Changes in UK Tax Legislation – How Will it Affect Vets?
Some important new changes in tax legislation are coming into force this April. It is important for vets to be aware of these changes, as they will have a direct impact on the work you do, particularly as a locum. Read on to find out more – we’ve done the hard part of breaking down what these changes mean for you!
What is changing?
These changes in tax legislation are known as ‘IR35’ – this is the law that covers how you are taxed if you work through an intermediary, such as a limited company, to provide a service to a company, rather than being employed directly by that company. Simply put, if you work as a locum through your own umbrella company, this applies to you!
The responsibility will move from you to your employer to make sure you’re paying the right amount of tax – but only if they are a medium or large employer. Most vet practices are owned by bigger companies, and so are counted as a large employer. For smaller, independent practices with less than 50 employees, an annual turnover of under £10.2 million, and/or a balance sheet total of less than £5.1 million, the rules stay the same as before – it is your own responsibility to sort out how much tax you owe.
Most locums do however work for bigger companies who own numerous vet practices around the country, so these new rules will apply.
Do I need to do anything?
Great news – these new rules should make life that little bit easier for you, and you don’t need to do anything. It will be up to the company you are locuming for to sort out how much PAYE and National Insurance you owe and take this out of your wages on your behalf. They will do the work for you!
The company you are working for will also have to provide you with a document called a ‘Status Determination Statement’, which simply lets you know that these rules apply to you while you work as a locum for them.
Hopefully this clarifies any concerns you might have. Please don’t hesitate to get in touch with any questions you might have – contact us anytime on [email protected] and one of our specialist advisors can give you further advice.
If you are currently looking for locum opportunities check out our dedicated webpage – Locum Vet Jobs
If you haven’t locumed before – don’t worry! We can help you step by step, with everything from finding a job to sorting your financial affairs. Contact our dedicated advisors today to find out more.
What digital and personal services are available to you today:
- Vet Jobs Worldwide – Australia, Canada, Hong Kong, Ireland, New Zealand, the UK and many more.
- Veterinary Webinars – Check out the most flexible on demand digital learning available to you with veterinary experts from all over the world.
- Financial – Worried about what you might do if you get sick or want to know how to sort your own veterinary savings? – Speak to our specialist veterinary financial team any time.
Contact – [email protected]
