Is this a step in the right direction?
I got an email from a large chain i used to locum at regarding changes in HMRC classification on locums
Dear quasa,
Industry wide HMRC investigation into locum pharmacists
As you are aware, L.Rowland & Company (Retail) Limited (the "Company" or “Rowlands”) engages off-payroll locum pharmacists and other off-payroll workers ("Locums") to support its operations. This is common practice across all pharmacy businesses (and the medical services sector as a whole) such that HM Revenue & Customs ("HMRC") has specific guidance for Locums on 'employment status for tax' (i.e. whether Locums' income should be treated as 'employment income' or 'business income' for tax purposes). That guidance can be accessed here: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4000 (the "Guidance"). You will likely be aware of the Guidance.
The Company has always diligently followed the Guidance, treating its Locums as self-employed workers. This means that payments to Locums, such as you, will not have been subject to PAYE income tax (as it is for employees of the Company) and you will have had to declare your own income to HMRC, by way of annual self-assessment tax returns. This, again, is common practice across the pharmacy sector and you will no doubt have experienced the same situation when undertaking locum work for other pharmacies outside of the Company.
Unfortunately, HMRC now seems to be moving towards a sector-wide policy position that departs from its previous approach. It is now suggesting it may it consider some Locums to be 'employed' for tax purposes (contrary to its own Guidance in many cases). To this end, HMRC is currently enquiring in to the tax affairs of many major pharmacy businesses, including Rowlands. In particular, HMRC is seeking to recover from the Company (and other pharmacy businesses) the PAYE that would have been deducted had the Locums, such as you, been treated as employed for tax purposes for the tax years 2015/16 onwards. HMRC is not generally able to 'look back' further than 6 years under law which is why their enquiries are for later periods only.
We write to inform you, as one of the thousands of Locums who work, or have worked, with Rowlands whose status is being considered by HMRC, that this process is ongoing.
The Company is working alongside national associations and bodies such as the Company Chemists' Association in relation to this matter as it is an industry-wide issue. The Company has also instructed a leading law firm to represent it. The Company has always followed the HMRC Guidance, has been a responsible taxpayer and intends robustly to defend its position on the status of locums.
We are aware that some Locums have been invited to attend an interview with HMRC to discuss these matters. It was wrong of HMRC to send these requests (which requests are contrary to their own published rules and regulations). The Company has lodged a formal complaint with HMRC as regards these direct approaches. If you are invited to attend an interview with HMRC to discuss these matters, we ask that you do not respond to HMRC and instead please inform Tricia Marsh, the Rowlands Head of Central Operations, at the following email address; [email protected]. If possible also please send a scan or picture of the correspondence you have received from HMRC.
For the avoidance of any doubt, HMRC has not suggested that it is seeking or intends to seek any tax underpaid from you. HMRC has made clear that it intends to pursue the Company and other pharmacy businesses for any tax underpaid (if there is any, which we do not agree).
We appreciate that this letter, and any letter you receive from HMRC, may be unsettling. If you have any questions, please email them to; [email protected]. You will appreciate that the Company works with a significant number of Locums and as such it may take some time for us to respond to any questions you have. We will do our best to come back to you as soon as possible.
If you have a personal accountant or tax adviser, we recommend that you send a copy of this letter to them.
We will provide further updates in due course.
Kind regards
Yours sincerely,
Mark Bather
Managing Director – Rowlands Pharmacy
Personally i have 2 thoughts about this:
1) if you locum for multiple companies , it will create a headache regarding tax unless you are able to set up a ltd company (which is now very problematic courtesy of IR35 legislation introduced a few months ago) or through an umbrella company.
2) conversely however, this is a major step in terns of fair working conditions and employee rights. This means we can legally demand references from them and they have to oblige /acknowledge us, be enrolled on company pension schemes (which they have to contribute towards) and other benefits full time employees receive.
So yeah, what are your views on this?
Dear quasa,
Industry wide HMRC investigation into locum pharmacists
As you are aware, L.Rowland & Company (Retail) Limited (the "Company" or “Rowlands”) engages off-payroll locum pharmacists and other off-payroll workers ("Locums") to support its operations. This is common practice across all pharmacy businesses (and the medical services sector as a whole) such that HM Revenue & Customs ("HMRC") has specific guidance for Locums on 'employment status for tax' (i.e. whether Locums' income should be treated as 'employment income' or 'business income' for tax purposes). That guidance can be accessed here: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4000 (the "Guidance"). You will likely be aware of the Guidance.
The Company has always diligently followed the Guidance, treating its Locums as self-employed workers. This means that payments to Locums, such as you, will not have been subject to PAYE income tax (as it is for employees of the Company) and you will have had to declare your own income to HMRC, by way of annual self-assessment tax returns. This, again, is common practice across the pharmacy sector and you will no doubt have experienced the same situation when undertaking locum work for other pharmacies outside of the Company.
Unfortunately, HMRC now seems to be moving towards a sector-wide policy position that departs from its previous approach. It is now suggesting it may it consider some Locums to be 'employed' for tax purposes (contrary to its own Guidance in many cases). To this end, HMRC is currently enquiring in to the tax affairs of many major pharmacy businesses, including Rowlands. In particular, HMRC is seeking to recover from the Company (and other pharmacy businesses) the PAYE that would have been deducted had the Locums, such as you, been treated as employed for tax purposes for the tax years 2015/16 onwards. HMRC is not generally able to 'look back' further than 6 years under law which is why their enquiries are for later periods only.
We write to inform you, as one of the thousands of Locums who work, or have worked, with Rowlands whose status is being considered by HMRC, that this process is ongoing.
The Company is working alongside national associations and bodies such as the Company Chemists' Association in relation to this matter as it is an industry-wide issue. The Company has also instructed a leading law firm to represent it. The Company has always followed the HMRC Guidance, has been a responsible taxpayer and intends robustly to defend its position on the status of locums.
We are aware that some Locums have been invited to attend an interview with HMRC to discuss these matters. It was wrong of HMRC to send these requests (which requests are contrary to their own published rules and regulations). The Company has lodged a formal complaint with HMRC as regards these direct approaches. If you are invited to attend an interview with HMRC to discuss these matters, we ask that you do not respond to HMRC and instead please inform Tricia Marsh, the Rowlands Head of Central Operations, at the following email address; [email protected]. If possible also please send a scan or picture of the correspondence you have received from HMRC.
For the avoidance of any doubt, HMRC has not suggested that it is seeking or intends to seek any tax underpaid from you. HMRC has made clear that it intends to pursue the Company and other pharmacy businesses for any tax underpaid (if there is any, which we do not agree).
We appreciate that this letter, and any letter you receive from HMRC, may be unsettling. If you have any questions, please email them to; [email protected]. You will appreciate that the Company works with a significant number of Locums and as such it may take some time for us to respond to any questions you have. We will do our best to come back to you as soon as possible.
If you have a personal accountant or tax adviser, we recommend that you send a copy of this letter to them.
We will provide further updates in due course.
Kind regards
Yours sincerely,
Mark Bather
Managing Director – Rowlands Pharmacy
Personally i have 2 thoughts about this:
1) if you locum for multiple companies , it will create a headache regarding tax unless you are able to set up a ltd company (which is now very problematic courtesy of IR35 legislation introduced a few months ago) or through an umbrella company.
2) conversely however, this is a major step in terns of fair working conditions and employee rights. This means we can legally demand references from them and they have to oblige /acknowledge us, be enrolled on company pension schemes (which they have to contribute towards) and other benefits full time employees receive.
So yeah, what are your views on this?
(edited 3 years ago)
Original post by quasa
It always used to be, if you worked for at least TWO companies, on various different days, then you could be classed as self-employed if you only did scripts, sold and supervised OTC meds, and talked to patients. Anything else, like doing staff rotas, or ordering stock, like for the shop, things employee pharmacists do, then you might have a problem.
Have you noticed today, they're on about moving the age exemption from 60 to 66 in line with pension age. I've said they should have done this ages ago. Mainly due to the wastage!!
If this is implemented and tax is being deducted at source beforethe locum gets paid, it then means that we are entitled to ask for every other entitlement which an employee gets from the company. Holiday pay, sick pay, pension etc.
Original post by Claremont4ever
If this is implemented and tax is being deducted at source beforethe locum gets paid, it then means that we are entitled to ask for every other entitlement which an employee gets from the company. Holiday pay, sick pay, pension etc.
Agreed. Tis something we should demand
Original post by Claremont4ever
If this is implemented and tax is being deducted at source beforethe locum gets paid, it then means that we are entitled to ask for every other entitlement which an employee gets from the company. Holiday pay, sick pay, pension etc.
I say implement it. Im fed up of pharmacies treating people like crap. Its time they, and the government, are held liable for their actions
Original post by quasa
I got an email from a large chain i used to locum at regarding changes in HMRC classification on locums
Dear quasa,
Industry wide HMRC investigation into locum pharmacists
As you are aware, L.Rowland & Company (Retail) Limited (the "Company" or “Rowlands”) engages off-payroll locum pharmacists and other off-payroll workers ("Locums") to support its operations. This is common practice across all pharmacy businesses (and the medical services sector as a whole) such that HM Revenue & Customs ("HMRC") has specific guidance for Locums on 'employment status for tax' (i.e. whether Locums' income should be treated as 'employment income' or 'business income' for tax purposes). That guidance can be accessed here: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4000 (the "Guidance"). You will likely be aware of the Guidance.
The Company has always diligently followed the Guidance, treating its Locums as self-employed workers. This means that payments to Locums, such as you, will not have been subject to PAYE income tax (as it is for employees of the Company) and you will have had to declare your own income to HMRC, by way of annual self-assessment tax returns. This, again, is common practice across the pharmacy sector and you will no doubt have experienced the same situation when undertaking locum work for other pharmacies outside of the Company.
Unfortunately, HMRC now seems to be moving towards a sector-wide policy position that departs from its previous approach. It is now suggesting it may it consider some Locums to be 'employed' for tax purposes (contrary to its own Guidance in many cases). To this end, HMRC is currently enquiring in to the tax affairs of many major pharmacy businesses, including Rowlands. In particular, HMRC is seeking to recover from the Company (and other pharmacy businesses) the PAYE that would have been deducted had the Locums, such as you, been treated as employed for tax purposes for the tax years 2015/16 onwards. HMRC is not generally able to 'look back' further than 6 years under law which is why their enquiries are for later periods only.
We write to inform you, as one of the thousands of Locums who work, or have worked, with Rowlands whose status is being considered by HMRC, that this process is ongoing.
The Company is working alongside national associations and bodies such as the Company Chemists' Association in relation to this matter as it is an industry-wide issue. The Company has also instructed a leading law firm to represent it. The Company has always followed the HMRC Guidance, has been a responsible taxpayer and intends robustly to defend its position on the status of locums.
We are aware that some Locums have been invited to attend an interview with HMRC to discuss these matters. It was wrong of HMRC to send these requests (which requests are contrary to their own published rules and regulations). The Company has lodged a formal complaint with HMRC as regards these direct approaches. If you are invited to attend an interview with HMRC to discuss these matters, we ask that you do not respond to HMRC and instead please inform Tricia Marsh, the Rowlands Head of Central Operations, at the following email address; [email protected]. If possible also please send a scan or picture of the correspondence you have received from HMRC.
For the avoidance of any doubt, HMRC has not suggested that it is seeking or intends to seek any tax underpaid from you. HMRC has made clear that it intends to pursue the Company and other pharmacy businesses for any tax underpaid (if there is any, which we do not agree).
We appreciate that this letter, and any letter you receive from HMRC, may be unsettling. If you have any questions, please email them to; [email protected]. You will appreciate that the Company works with a significant number of Locums and as such it may take some time for us to respond to any questions you have. We will do our best to come back to you as soon as possible.
If you have a personal accountant or tax adviser, we recommend that you send a copy of this letter to them.
We will provide further updates in due course.
Kind regards
Yours sincerely,
Mark Bather
Managing Director – Rowlands Pharmacy
Personally i have 2 thoughts about this:
1) if you locum for multiple companies , it will create a headache regarding tax unless you are able to set up a ltd company (which is now very problematic courtesy of IR35 legislation introduced a few months ago) or through an umbrella company.
2) conversely however, this is a major step in terns of fair working conditions and employee rights. This means we can legally demand references from them and they have to oblige /acknowledge us, be enrolled on company pension schemes (which they have to contribute towards) and other benefits full time employees receive.
So yeah, what are your views on this?
Dear quasa,
Industry wide HMRC investigation into locum pharmacists
As you are aware, L.Rowland & Company (Retail) Limited (the "Company" or “Rowlands”) engages off-payroll locum pharmacists and other off-payroll workers ("Locums") to support its operations. This is common practice across all pharmacy businesses (and the medical services sector as a whole) such that HM Revenue & Customs ("HMRC") has specific guidance for Locums on 'employment status for tax' (i.e. whether Locums' income should be treated as 'employment income' or 'business income' for tax purposes). That guidance can be accessed here: https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm4000 (the "Guidance"). You will likely be aware of the Guidance.
The Company has always diligently followed the Guidance, treating its Locums as self-employed workers. This means that payments to Locums, such as you, will not have been subject to PAYE income tax (as it is for employees of the Company) and you will have had to declare your own income to HMRC, by way of annual self-assessment tax returns. This, again, is common practice across the pharmacy sector and you will no doubt have experienced the same situation when undertaking locum work for other pharmacies outside of the Company.
Unfortunately, HMRC now seems to be moving towards a sector-wide policy position that departs from its previous approach. It is now suggesting it may it consider some Locums to be 'employed' for tax purposes (contrary to its own Guidance in many cases). To this end, HMRC is currently enquiring in to the tax affairs of many major pharmacy businesses, including Rowlands. In particular, HMRC is seeking to recover from the Company (and other pharmacy businesses) the PAYE that would have been deducted had the Locums, such as you, been treated as employed for tax purposes for the tax years 2015/16 onwards. HMRC is not generally able to 'look back' further than 6 years under law which is why their enquiries are for later periods only.
We write to inform you, as one of the thousands of Locums who work, or have worked, with Rowlands whose status is being considered by HMRC, that this process is ongoing.
The Company is working alongside national associations and bodies such as the Company Chemists' Association in relation to this matter as it is an industry-wide issue. The Company has also instructed a leading law firm to represent it. The Company has always followed the HMRC Guidance, has been a responsible taxpayer and intends robustly to defend its position on the status of locums.
We are aware that some Locums have been invited to attend an interview with HMRC to discuss these matters. It was wrong of HMRC to send these requests (which requests are contrary to their own published rules and regulations). The Company has lodged a formal complaint with HMRC as regards these direct approaches. If you are invited to attend an interview with HMRC to discuss these matters, we ask that you do not respond to HMRC and instead please inform Tricia Marsh, the Rowlands Head of Central Operations, at the following email address; [email protected]. If possible also please send a scan or picture of the correspondence you have received from HMRC.
For the avoidance of any doubt, HMRC has not suggested that it is seeking or intends to seek any tax underpaid from you. HMRC has made clear that it intends to pursue the Company and other pharmacy businesses for any tax underpaid (if there is any, which we do not agree).
We appreciate that this letter, and any letter you receive from HMRC, may be unsettling. If you have any questions, please email them to; [email protected]. You will appreciate that the Company works with a significant number of Locums and as such it may take some time for us to respond to any questions you have. We will do our best to come back to you as soon as possible.
If you have a personal accountant or tax adviser, we recommend that you send a copy of this letter to them.
We will provide further updates in due course.
Kind regards
Yours sincerely,
Mark Bather
Managing Director – Rowlands Pharmacy
Personally i have 2 thoughts about this:
1) if you locum for multiple companies , it will create a headache regarding tax unless you are able to set up a ltd company (which is now very problematic courtesy of IR35 legislation introduced a few months ago) or through an umbrella company.
2) conversely however, this is a major step in terns of fair working conditions and employee rights. This means we can legally demand references from them and they have to oblige /acknowledge us, be enrolled on company pension schemes (which they have to contribute towards) and other benefits full time employees receive.
So yeah, what are your views on this?
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) thank you so much!!Quick Reply
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