Share with your friends

HMRC locums campaign

HMRC locums campaign

HMRC enforcement teams have launched a campaign to review the employment status of locums.


Also on

HMRC enforcement teams have launched a campaign to review the employment status of locums.

HMRC is contacting employers that use locums to discuss the terms on which they are engaged and to also arrange worker interviews.

The reason for its enquiries is that HMRC believe that PAYE and NIC has been underpaid due to many locums being miscategorised as self-employed. To check the status of such workers, HMRC is seeking to test the following areas:

  • Supervision: Is the locum supervised in any way?  For example, is a check carried out on any work performed? Is there a performance management process?
  • Direction: Is the locum instructed what to do?  For example, does the locum have any role in managing staff, ordering stock etc.?
  • Control: Is the locum subject to the similar control conditions as employees?  For example, can the locum manage their own working time? Can they be told how to perform their duties? 

Preparing for challenge

Employers that engage locums should be well prepared for the inevitable challenge from HMRC. The following approach should therefore be considered:

  1. Desktop review and commentary on all documentation to identify areas where employment status may be challenged.
  2. Discussions with internal stakeholders responsible for engaging locums and reviewing employment status to confirm understanding of working practises to determine whether this is clearly reflected in the documentation.
  3. Discussions with the locums to consider how their views may influence HMRC’s decision.

How can we help

Our Employment Solutions team includes experienced ex-HMRC personnel and are supporting a number of clients to check the employment status of locums. 

If you have any queries, please do not hesitate to get in touch with Caroline Laffey or Colin Purdue

Connect with us


Want to do business with KPMG?


loading image Request for proposal