As a healthcare locum working in the UK, staying compliant with tax legislation is crucial to protecting your earnings and career longevity. IR35 remains one of the most significant regulatory challenges for contractors in 2025, impacting how locums—including doctors, radiographers, nurses, and allied health professionals (AHPs)—are taxed. In this comprehensive guide, we’ll break down what IR35 means, how it affects healthcare professionals, and how MedicsPro can help you navigate this complex landscape with confidence.

What is IR35? Understanding the Basics for Healthcare Locums

IR35 is UK tax legislation introduced by HM Revenue & Customs (HMRC) to prevent “disguised employment.” This occurs when contractors provide services through an intermediary (usually a Personal Service Company, or PSC) but effectively work like employees to avoid paying full employment taxes such as income tax and National Insurance contributions.

For healthcare locums, the application of IR35 can vary depending on how contracts are structured and the nature of your working relationship with the NHS trust, private clinic, or agency. If caught “inside IR35,” you will be taxed like an employee, potentially reducing your take-home pay significantly.

Why IR35 Matters for Healthcare Locums

Healthcare locums frequently work across multiple trusts and private providers under different contracts. The implications of IR35 include:

• Taxation impact: Being inside IR35 means higher tax and National Insurance contributions, which affect your net income.

• Contractual clarity: Without clear contracts specifying your status, you risk unexpected tax bills and penalties.

• Financial planning: Knowing your IR35 status helps you budget accurately and avoid surprises during tax season.

Understanding and managing IR35 status is critical to ensuring your financial wellbeing as a healthcare professional.

Inside IR35 vs Outside IR35: What’s the Difference?

Determining your IR35 status hinges on several factors, including the degree of control over your work, mutuality of obligation, and financial risk.

• Inside IR35:
o You are effectively treated as an employee for tax purposes.
o Income tax and National Insurance are deducted at source, similar to PAYE employment.
o Limited scope for claiming expenses.

• Outside IR35:
o You are genuinely self-employed, contracting on your own terms.
o You can benefit from legitimate business expenses and take dividends from your PSC.
o Greater control over work patterns and flexibility.

Healthcare locums must carefully review contracts and working arrangements to understand where they fall on this spectrum.

How IR35 Affects Healthcare Locums’ Daily Working Life

The practical impact of IR35 for locums can include:

• Reduced take-home pay impacting lifestyle and savings.

• Additional administrative burden related to compliance and paperwork.

• Changes in how you negotiate contracts and select placements.

• Potential difficulties securing certain private sector roles with strict compliance demands.

Being proactive about IR35 means you can continue to enjoy the flexibility and variety of locum work without unexpected tax liabilities.

MedicsPro’s Commitment: Supporting Locums with IR35 Compliance in 2025

MedicsPro understands the complexities healthcare professionals face under IR35 legislation and is dedicated to supporting locums through every step of the compliance process:

• Expert Contract Vetting: We review all contracts and assignments for IR35 risks before placements to ensure clarity.

• Clear, Transparent Guidance: We provide personalised advice so you understand your tax status and its implications.

• Compliant Assignments: Our extensive client network includes NHS trusts and private clinics who respect and adhere to IR35 rules.

• Ongoing Support: Our dedicated compliance team keeps you informed on legislative changes and best practices.

By partnering with MedicsPro, locums can focus on delivering exceptional care while we manage the legal complexities.

Practical Tips for Healthcare Locums to Stay IR35 Compliant in 2025

• Maintain Detailed Records: Document contracts, working hours, responsibilities, and communications to support your IR35 status.

• Regular Contract Reviews: Seek expert opinions on your contracts before signing and when renewing.

• Understand Your Working Practices: How much control you have, substitution rights, and mutual obligations all influence IR35 status.

• Use Professional Advice: Engage accountants or tax advisors experienced in healthcare locum contracts.

• Partner with Compliant Agencies: Agencies like MedicsPro prioritise IR35 compliance and provide support throughout your assignments.

Conclusion

IR35 legislation continues to be a vital consideration for healthcare locums in 2025, with significant implications for tax liabilities and contract management. Staying informed, maintaining clear contracts, and working with trusted agencies like MedicsPro ensures you can protect your income, remain compliant, and enjoy a successful locum career.

MedicsPro is here to provide expert guidance, transparent processes, and compliant opportunities tailored for healthcare professionals across the UK. Contact us today to learn how we can help you navigate IR35 with confidence.