The long-rumoured change to associate’s “guaranteed” self-employment status was confirmed yesterday by HMRC.

Associates currently benefit from a dispensation with HMRC which says that they will be deemed self-employed when using a model-BDA contract. Guidance has been updated to confirm this dispensation will no longer apply from 6 April 2023.

This change is prompted by work that HMRC have been doing in this area over recent years. They’ve identified a number of dentists whose actual working arrangements do not match the contract they are operating under (employment status is always based on facts, not contracts) and we’ve seen sweeping changes to the operation of off-payroll working (IR35) in other industries. This is all under the guise of increased employment rights, but I’m sure HMRC won’t mind the increased tax take.

What will this mean? If you’re actually working in line with the contract you have in place, potentially nothing. This doesn’t prevent associates from being self-employed, it just means you have to actually be self-employed.

HMRC have a handy (but universally derided) tool to help determine your status and they welcome feedback on what results this is generating.

Coupled with upcoming National Insurance rates, this could be painful for associates deemed as employees.

This is perhaps more likely to lead to changes to how you work rather than increased taxes.

If you’ve got concerns, give us a call.