PSC still permitted?

[Scrag Meister]

My wife works through a ltd and is coming under pressure from her agency to switch to an umbrella.

Is a ltd no longer permitted or is it just the agency getting annoyed as they need to do the PAYE calcs and deductions?

[LoughriggFell]

My wife works through a ltd and is coming under pressure from her agency to switch to an umbrella.

Is a ltd no longer permitted or is it just the agency getting annoyed as they need to do the PAYE calcs and deductions?

I think the agencies are taking different approaches, some are saying that PSC's won't be allowed anywhere in the supply chain, others are saying you can remain as a PSC, but their subsequent deductions mean you will be worse off than if you were with an umbrella.

[Andy Hallett]

We will still pay PSCs. I can understand that it won't be worth doing for small agencies or those with a small exposure to the public sector.

[Scrag Meister]

My wife has decided to leave contracting and go back perm.

She is leaving her current local authority and has already been offered a new role in a different local authority nearer to home.

Less £ but also less stress.

Sometimes you just don't need it in your life.

[LoughriggFell]

My wife has decided to leave contracting and go back perm.

She is leaving her current local authority and has already been offered a new role in a different local authority nearer to home.

Less £ but also less stress.

Sometimes you just don't need it in your life.

Its no longer financially viable to contract, if you are on capped rates. Sounds like a good move.

[Scrag Meister]

Its no longer financially viable to contract, if you are on capped rates. Sounds like a good move.

Yes the local authorities in our area have a rates cartel so they don't try and out bid each other for resources.

[John Lane]

Rate fixing, cartels, not trolling - just wonder if that is allowed/legal?

[malvolio]

Yes the local authorities in our area have a rates cartel so they don't try and out bid each other for resources.

Send in an FOI asking how many of the council's officers and employees are on > £56k pa, or double the national average, by department...

[Andy Hallett]

The term Cartel generally refers to suppliers, not buyers.

Government organisations procure collectively, normally via Crown Commercial Services (CCS). All perfectly legal as are most buying collectives.

Now if agencies were to all get together and refuse to supply under certain prices or margins, that would be illegal.

[psychocandy]

I just started an inside PS role. The agency heavily pushed umbrella.

They refused to allow direct to ltd and insisted on there having to be a payroll provider in place. In the end it was hassle so I signed up for umbrella. Hoping to get something else sorted though for next extension. I'm paying 1/2 accountant fees for next few months and keeping ltd for now.

BTW this client had wholesale contractor bail out. Obviously, not wise to remain when client has declared inside IR35. I would have done the same to avoid risking retrospective.

Worked out well for me though because client realised they had to up the rate - and did by 30%+. Local gig so no real worries about travel/accom. But obviously they're going to struggle to get anythuing other than local people now (since you can't claim hotel etc).