Crackdown on tax dodges of locum doctors

LOCUM doctors and nurses will be banned from setting themselves up as private companies so they can dodge taxes, under new NHS rules.

Up to 90 per cent of temporary staff are thought to be using the ruse. It means they only pay corporation tax of around 21 per cent, whereas income tax can be as high as 45 per cent.

Watchdog NHS Improvement will tell hospitals to ensure all agency doctors and nurses are on their payroll.

It estimates the highest earning locums are collectively paid £2 million a year. Their rates are up to £160 an hour, almost £4,000 for a 24-hour on-call shift.

The watchdog, which expects the measures to save an extra £300 million a year, estimates the NHS has saved £1 billon a year since new caps on agency fees were introduced in October 2015.

Jim Mackey, chief executive of NHS Improvement, said: ‘We expect these new measures to take another big chunk out of excessive agency costs; there are far too many agency staff making the most out of the lower tax rates.’

A Department of Health spokesman said: ‘These measures will help to level the playing field for NHS staff.’