Results of the public sector consultation is up

[Gaz_M]

Some people's arrogance on this site must put many contractors off from contributing. I've had enough after 24 hours.

Oh, and thousands of posts on an IT message board doesn't make you very special, in fact, quite the opposite.

[LondonManc]

I am in the Private Sector (Construction, not IT) so maybe I have a few more years grace, but beyond that who knows. Perhaps Private Sector Clients will be more careful about how they operate with clearly defined in/out arrangements.

As far as the Public Sector goes, it depends if the current incumbents roll-over and accept paying more tax or stand-firm. As has been pointed out before, if you were faced with 75% of your usual day-rate, or zero%, it is a no brainer. I won't be holding my breath for all these IT Contractors to make a stand.

In the short term I intend to try to maximise my earning position as best I can in readiness for future changes to come. Perhaps I will sail a little closer to the wind with respect to tax planning if I know my LTD has a limited shelf life, no pun intended.

I'm private sector IT, I was just wondering how you intended to fulfil your director's obligation with zero income beyond that which you're receiving as PAYE from a public sector gig. I don't think it will be plain sailing, but I think the private sector are completely resistant to this change and changes will be agency-led, given that it's in their interest to stay in the outside IR35 loop.

[Contreras]

A Directory is legally obligated to manage a company in a responsible manner and spending all available revenue on employee remuneration whilst failing to set-aside sums for the running of the business leading to becoming insolvent do not appear to be responsible actions.

Under IR35 anything paid to the company is treated as Deemed Income and legally has to be paid as salary subject to PAYE to the individual doing the work. That legal obligation trumps the directors obligation. Paying what you are legally obliged to pay is more responsible than not obeying the law and risking legal penalties and fines as a result.

The tax must be paid as if subject to PAYE but the company is not forced to pay the remainder as salary. It could be retained if the director so decided (not that it makes sense to do so).

[eek]

Well they get slated whatever ! But imho Bette to say 'we are on it, watch this space and we plan to say more in x days' than nothing at all

Isn't that x days time element covered by the online seminar on Friday lunchtime? It's worth emphasising that until Monday everyone did expect / fear that agencies would be determining status the fact they are not and only the end client is means that even things that had been prepared probably need to be looked at again...

Remember I'm definitely not IPSE's biggest fan but I would much rather they spent time trying to work out how they can deal with this and coming up with a thought through plan rather than rushing things and coming up with unworkable options. And that is definitely going to take some time.....

[MrMarkyMark]

Some people's arrogance on this site must put many contractors off from contributing. I've had enough after 24 hours.

Oh, and thousands of posts on an IT message board doesn't make you very special, in fact, quite the opposite.

Because you are wrong?

Dear

[LondonManc]

Some people's arrogance on this site must put many contractors off from contributing. I've had enough after 24 hours.

Oh, and thousands of posts on an IT message board doesn't make you very special, in fact, quite the opposite.

Joined in 2009....

[eek]

Some people's arrogance on this site must put many contractors off from contributing. I've had enough after 24 hours.

Oh, and thousands of posts on an IT message board doesn't make you very special, in fact, quite the opposite.

How many times do we have to tell you that these rules as they currently stand won't work in the private sector and if these changes are extended to the private sector it will be at least 2 years away... The fact you believe otherwise is fair enough but you have no evidence whatsoever to back up your fear while others on here already understand both the background to this and after a day or so the actual intention of this law (to the extent that we know that it cannot work in the private sector in this form).

[Gaz_M]

Brilliant. As if to prove my point, within a matter of minutes I net a handful of geeks with a single worm.

Bless.

[eek]

Brilliant. As if to prove my point, within a matter of minutes I net a handful of geeks with a single worm.

Bless.

So any evidence to show this will be extended to the private sector?

[MoroccanMole]

I'm private sector IT, I was just wondering how you intended to fulfil your director's obligation with zero income beyond that which you're receiving as PAYE from a public sector gig. I don't think it will be plain sailing, but I think the private sector are completely resistant to this change and changes will be agency-led, given that it's in their interest to stay in the outside IR35 loop.

I don't know to be honest LondonManc. In the short term, I would cover business expenses from retained profits, and in the longer term switch to umbrella I guess. I would have to give up my Office for starters.

A Perm - a permanent role is always on the cards in the Construction industry, but the old 1% rule applies (£650/day or £65k/year) so it would a big hit on my income/savings potential/retirement plan.

I am optimistically hoping that the Private Sector will prove to be more resilient. There are already staff shortages in my sector and Clients might adapt to the changes.

I work along side several Contractor's both to the Client and the Clients-Client who is a PS body, and most haven't got a clue about the forthcoming changes. The level of ignorance is shocking. Offshore loan schemes, blind faith in the accountant, branded Ltd Company mugs, contracts no more than 2yrs, not a clue. Anecdotal rumours about the old guy in the corner who has done his one contract role for 25yrs. Brexit benefits. I liken it to the old wives tale about not getting pregnant if you F**k standing up.

Even on these forums, the amount of posters asking basic questions because they haven't read the guidance notes or the consultation papers.

I am still in favour of throwing 90% under the bus, let HMRC think it has won, and create some breathing space for the real freelancers.