Public Sector Contracting

**missinggreenfields** · 27 May 2016, 15:11

What does the council procurement policy say?

I'd send it to Private Eye and see if it appears in their Rotten Boroughs column.

**northernladuk** · 27 May 2016, 15:13

Just report them as Fri to Monday contractor and falling inside IR35.

**DaveB** · 27 May 2016, 17:22

Originally posted by rl4engc View Post

Does anyone know if the following scenario allowed under U.K. law? My experience of working in the Public Sector is (thankfully) limited but I can't find anything online. NB it's not hypothetical, more investigatory.

Person works for Council as an employee, leaves, sets up a LtdCo as a consultancy (sole Director, no employees), Council (More likely, someone high up who's a good friend of Director) then secures the services of LtdCo on a one year contract at say £900/day. This get renewed every year with no invitation to tenders etc. LtdCo does no other work for any other customers.

Legit? Dodgy? Standard Practice? Any help appreciated!

Said person is squarely inside IR35.

Cant comment on council procurement rules but it certainly doesn't sound kosher.

**Old Greg** · 27 May 2016, 19:15

Is the contractor working direct or via an intermediary on a framework?

If you're that bothered tell whichever local rag have the councils most. And the union.

**bobspud** · 27 May 2016, 19:34

It doesn't matter how he got there, he falls foul of the rules put in place after Ed Lester.

He's in control of a key part of the organisation and his role will not die when he leaves the post...

**original PM** · 27 May 2016, 19:48

Yup classic Friday to Monday exactly what IR35 was bought out to stop.

Also if he got redundancy (although you say he left so probably not) then he would have to pay the tax free amount back.

**Old Greg** · 27 May 2016, 19:53

Originally posted by original PM View Post

Yup classic Friday to Monday exactly what IR35 was bought out to stop.

Also if he got redundancy (although you say he left so probably not) then he would have to pay the tax free amount back.

But the contractor may be paying full whack inside IR35. It is the procurement part that may be dodgy. Having said that, they are probably off a framework via an intermediary. I don't know if there are rules within the framework for mini-competitions. If there is, an FoI request may get teh details of the mini-competition or it may be published heres: https://www.gov.uk/contracts-finder (not sure about the rules in the UK on this one).

**original PM** · 27 May 2016, 20:00

Originally posted by Old Greg View Post

But the contractor may be paying full whack inside IR35. It is the procurement part that may be dodgy. Having said that, they are probably off a framework via an intermediary. I don't know if there are rules within the framework for mini-competitions. If there is, an FoI request may get teh details of the mini-competition or it may be published heres: https://www.gov.uk/contracts-finder (not sure about the rules in the UK on this one).

Yes indeed that is correct assuming he has an intention of not trying to pass himself as not being under IR35.

In terms of the procurement part there will always be a way to get around any of the restrictions.

**Old Greg** · 27 May 2016, 20:02

Originally posted by original PM View Post

Yes indeed that is correct assuming he has an intention of not trying to pass himself as not being under IR35.

In terms of the procurement part there will always be a way to get around any of the restrictions.

There is usually a way but that doesn't mean it was followed.

Public Sector Contracting