New Contract with PS

**Andy Hallett** · 15 March 2017, 14:35

Originally posted by deyceg View Post

Hey guys,

I've been following the discussions regarding the legislation changes closely on here after a PSB approached me directly.

There are alot of threads out there about working through agencies or umbrellas but none for working directly for the PSB.

Is there anything I should be aware of during the engagement? I'm a little hesitant about moving forward unless all my ducks are in a row.

They've come back to me with an outside IR35 determination (via the tool). Im not 100% convinced that this is enough if HMRC decided to "investigate" at any point. Am I liable for the the tax/interest/fines is the clients determination is found to be "wrong"?

No liability, their responsibility, fill your boots.

**Patrick@Intouch** · 15 March 2017, 14:37

There are a couple of points to note here.

HMRC state that they will abide by the output generated by the digital tool. This will be the case unless the answers provided are found to be false.

If the answers provided in the tool were false and provided to generate an "outside" outcome then it would be the fee payer (in this case the PS body) who would be culpable and not you.

**LondonManc** · 15 March 2017, 16:30

Originally posted by Patrick@Intouch View Post

There are a couple of points to note here.

HMRC state that they will abide by the output generated by the digital tool. This will be the case unless the answers provided are found to be false.

If the answers provided in the tool were false and provided to generate an "outside" outcome then it would be the fee payer (in this case the PS body) who would be culpable and not you.

The interesting part of this is - if the contractor is investigated mid-contract and are found to be inside, what happens? Is it a case of cease the contract because it is no longer valid?

If the OP does take it, I'd recommend they get on as short a billing cycle as possible, ideally weekly.

**quackhandle** · 15 March 2017, 16:47

Originally posted by LondonManc View Post

The interesting part of this is - if the contractor is investigated mid-contract and are found to be inside, what happens? Is it a case of cease the contract because it is no longer valid?

If the OP does take it, I'd recommend they get on as short a billing cycle as possible, ideally weekly.

So you could be a PSC, working direct with PS, but outside of IR35?

Can't see HMRC liking that (even there it's their own tool that returns your status) but granted can't see there being many examples of this

qh

**LondonManc** · 15 March 2017, 16:53

Originally posted by quackhandle View Post

So you could be a PSC, working direct with PS, but outside of IR35?

Can't see HMRC liking that (even there it's their own tool that returns your status) but granted can't see there being many examples of this

qh

I think HMRC will let a few go - while they are intent on taxing contractors out of existence for some reason (the country will die without its flexible workforce), I think they have to accept that under their own laws, there are clearly contractors who are outside IR35. They simply want to prove that about two-thirds shouldn't be and they'll be happy. I'd suggest they'd be happy with a hit rate in the private sector of half that, given the protection that the private sector will want to give to its core contingent workforce.

**northernladuk** · 15 March 2017, 17:24

Originally posted by deyceg View Post

Is there anything I should be aware of during the engagement? I'm a little hesitant about moving forward unless all my ducks are in a row.?

Watch for a 90 day payment terms....

**bobspud** · 15 March 2017, 17:43

Originally posted by northernladuk View Post

Watch for a 90 day payment terms....

nope G-Gloud Suppliers have 5 day terms.

**deyceg** · 16 March 2017, 08:18

Originally posted by northernladuk View Post

Watch for a 90 day payment terms....

I think invoicing weekly and 14 day payment terms should be on the table!

New Contract with PS