Tell HMRC about staff who return to work for NHS trusts and local authorities during the coronavirus (COVID-19)
How payments are taxed for staff returning to work for the NHS and local authorities to help during the coronavirus pandemic.
Staff returning to help during the pandemic
Staff who re-join the NHS or local authorities to help during the coronavirus pandemic will be treated like normal employees.
Income Tax and National Insurance will be deducted as normal on all payments of salary and overtime under Pay As You Earn (PAYE).
You should ask your re-joining employee to complete a starter checklist form.
If they’ve been furloughed from another employment, they should complete Statement C.
Staff who have received termination or redundancy payments
Re-joining staff may have received a termination or redundancy payment at the end of their previous employment, which may have been exempt from tax up to £30,000.
The tax treatment of that payment does not change. They will not have to pay additional tax on their previous termination or redundancy payments if they return to work to help during the coronavirus pandemic.
Tax avoidance promoters targeting returning NHS workers
HMRC is aware that unscrupulous promoters of tax avoidance schemes are targeting workers returning to the NHS to help respond to the coronavirus (COVID-19) outbreak. HMRC warns returning workers to be alert to what these schemes might look like and to be very careful not to sign up to these schemes, which it considers to be tax avoidance.
Further information
Contact the HMRC dedicated helpline. They’re available to support anyone affected by coronavirus.