Over 2,500 UK healthcare professionals and providers will today (Monday 4th September) receive new guidelines on the correct imposition of new tax rules that could see locums lose 30-50% of their income.

The guidelines, published by the Locum Doctors’ Union (LDU) and Healthcare Professionals Union (HPU), aim to encourage a collaborative culture between locums and NHS Trusts, help healthcare professionals understand the IR35 rule and the complex terms of their locum contracts, and provide advice on what to do if they feel they are being unfairly taxed or underpaid for their work.

The NHS relies on locum healthcare workers to plug gaps in GP surgeries and hospitals - and the new rules would see them treated as employed workers, despite not being entitled to maternity pay, death-in-service pay, sick leave and more - which all other NHS staff receive.

The LDU, which is supported by the HPU - an association representing nurses and allied healthcare workers - successfully overturned the tax rule which was imposed at short notice by NHS Improvement in April and risked thousands of self-employed and agency workers leaving the already stretched health service.

NHS Trusts now have to carry out a case-by-case assessment for each locum worker to decide whether or not each individual’s circumstances dictate they should fall within IR35 - creating hours of extra work as Trusts look to ease pressure on staff and services – the LDU guidelines aim to ease this pressure for both locums and the NHS.

Each time a locum is taken on, their case and employment terms must be reviewed by both the healthcare professional and the NHS Trust to take into account the varying operating cultures of the different NHS providers.

The guidelines also address the topic of mutual exclusivity to a single NHS Trust, as some locums will work for multiple Trusts in a short space of time, to meet demand for workers from different areas.

The guidance issued by the LDU and HPU has been drafted in partnership with Alex Peebles, of Duncan Lewis Solicitors, and barrister Michael Paulin.

The LDU is keen that the guidance is undertaken in collaboration with the NHS and aims to continue to represent the best interests of healthcare professionals following the IR35 clarification.

Dr Benedict Itsuokor, president of the Locum Doctors Union, stated: “The guidelines will help locum healthcare workers and NHS Providers work together to achieve an amicable and fair solution to the IR35 tax rule.

“LDU will also continue to support its members through negotiation, mediation and litigation of contract terms where required.”

www.locumdoctorsunion.uk