Results of the public sector consultation is up

[seeourbee]

I had some conversations with relevant people tonight. There is a feint, and I mean feint, glimmer that something good could be around the corner. And yes they have seen the online model.

[youngguy]

It's sad to hear that as I think it illustrates you don't get the business model we work on. Just like HMT and BIES, the so called "champions" of small businesses.

How so?

[Contreras]

even if they do roll them out to the private sector, it will only make a difference if the clients choose to make their contractors inside. If they want SDC over a contractor then they'll do it as inside. And in that matter it might have the effect of making IR35 enforceable as desired.

But if they don't want SDC, then why would they volunteer to pay NICS?
I can see it making a difference in the private sector but only to permitractors who are skating on thin ice anyway.

Because the alternative might be a penalty from HMRC for wrong assessment.

Oh, and it's only 20% or so, ... and that is likely to be shared between client, squeezed agency margin, lower rate for the contractor, ... and the contractor can quit complaining about SDC and fall in to line (as HR would see it), ... and they get their temporary resource without the overhead of employment rights.

Its speculation at this stage, but when this comes for the private sector expect there to be no downside to a risk averse client/agent (other than a little extra tax) for assessing a contract inside IR35.

[rocktronAMP]

I'm currently working on a public sector gig that ends 31st March with final invoices to be paid after April.

// Baleted


Spoke to one other contractor here about the change and he states it won't impact him as he carries his own phone to meetings....

However, when the worse case scenario is paying tax on your £400 a day rate, life isn't that bad to be honest.

Supposing you have a four weeks notice in this PS sector, if I were you, I'd resign on the exact date of Friday 24th February 2016 with the letter signed, sealed and personally delivered to the line manager. Give yourself a one week holiday / grace, because if your payment crosses that starting line on the 6th April 2017 or afterwards, then you've had it.

[seeourbee]

Results of the public sector consultation is up

I may have missed the discussion but doesn't the legislation say MSCs are outside of these new rules. Para 48. So PS body pays Agency who in turn pay A Ltd, an MSC, who then pay another company B Ltd who is a PSC ?

[MoroccanMole]

Supposing you have a four weeks notice in this PS sector, if I were you, I'd resign on the exact date of Friday 24th February 2016 with the letter signed, sealed and personally delivered to the line manager. Give yourself a one week holiday / grace, because if your payment crosses that starting line on the 6th April 2017 or afterwards, then you've had it.

?????

Delivering a resignation letter to your line manager?

Are you an employee or a Contractor?

FFS.

[ContractBunny]

I had some conversations with relevant people tonight. There is a feint, and I mean feint, glimmer that something good could be around the corner. And yes they have seen the online model.

If I am going to stop drawing that bath at body temperature, then I am going to need more details than that.

[malvolio]

I may have missed the discussion but doesn't the legislation say MSCs are outside of these new rules. Para 48. So PS body pays Agency who in turn pay A Ltd, an MSC, who then pay another company B Ltd who is a PSC ?

Do keep up. MSCs are only legal if they pay you net of tax and NICs. That was sorted years ago.

And long daisy chains of improbable arrangements are totally pointless, since the Ramsay principle means HMRC can simply ignore any unnecessary intermediaries and look at the net result.

[seeourbee]

So what about the instances where a PS pays a consultancy who have a load of contractors operating through PSCs ? I had forgotten the rules about MSCs

[malvolio]

So what about the instances where a PS pays a consultancy who have a load of contractors operating through PSCs ? I had forgotten the rules about MSCs

We don't know but it appears that the contractor will have to be paid net by the consultancy under the decision of the PS client on status. The basic rule is the client sets the status the last organisation in the chain to the contractor's company pays the money over and manages the tax deductions. Whatever else is in the middle is apparently disregarded.

How that will work in anyone's guess, but the only sensible conclusion is a consultancy feeding a PS client will ensure that all its people are salaried, be they employees, FTC victims or PSCs.

We should be focussing on what we do about it, not crafty schemes to get out of it. They won't work and will only result in more draconian measures.