HM Revenue & Customs is cracking down on tax avoidance schemes sold to agency staff, who themselves cost the NHS £3bn a year, according to a report in the Sunday Times.
Officials say some of the schemes are similar to those offered to celebrities to help them cut their tax bills. NHS trusts are being warned they face fines if they have facilitated the use of such schemes.
The NHS spends more than £3bn a year on agency staff. New regulations introduced in April, known as IR35 rules, require NHS trusts to help ensure staff who are not on the payroll pay the correct amount of tax. The workers can be paid directly by the NHS, which would then deduct income tax and national insurance, or by "umbrella" companies or intermediary firms.
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