Any advice for government contracting?

[SussexSeagull]

Also, to state the obvious, permies don't have breaks between being paid salary. Contractors can and do.

[LondonManc]

Interesting. I wonder whether some clients would consider this an option. They do T and S for many of their employees and we wouldn't have to worry about being seen as disguised employees as we were already being taxed as such.

I might start using the gym and team coffee and milk as well ��

I was thinking of it from the other end of the spectrum - other consultancies will lump expenses on top of their consultant day rates - Senior Consultant would be charged out at £1,000 per day plus all reasonable expenses; that is, the end client coughs up the train fare, hotel bill, tax fare and so forth. If you can get that agreed, then you're on a good gig and it leaves you free to tax your normal up to higher rate pay and treat expenses as simply "pass-through" business expenses that you can invoice directly to client.

[SueEllen]

Granted, my point was that the permies monthly salary isn't just what ends up in their bank account each month.

I'm aware.

You are suppose to say "package" which often includes gym membership (to keep you healthy), private medical care (to keep you at work), car (to make sure you get to work), pension (cos they legally have to) plus cr*p like food at work (as they make you work long hours) and new laptop/macbook (so you can do some work).

[MrMarkyMark]

You are suppose to say "package" which often includes gym membership (to keep you healthy), private medical care (to keep you at work), car (to make sure you get to work), pension (cos they legally have to) plus cr*p like food at work (as they make you work long hours) and new laptop/macbook (so you can do some work).

Nail. on. head.

[supersteamer]

I was thinking of it from the other end of the spectrum - other consultancies will lump expenses on top of their consultant day rates - Senior Consultant would be charged out at £1,000 per day plus all reasonable expenses; that is, the end client coughs up the train fare, hotel bill, tax fare and so forth. If you can get that agreed, then you're on a good gig and it leaves you free to tax your normal up to higher rate pay and treat expenses as simply "pass-through" business expenses that you can invoice directly to client.

Large consultancies are allowed to treat this as business travel. IR35 caught contractors on the other hand are not, as it would be treated as home to work travel (normal commuting). So even if you package it separately you'd still owe BIK on it so it would not "pass through".

This is why this being presented as levelling the playing field rings so false as it's the exact opposite. Conflating temporary worker rules with temporary workplace rules makes no sense, and is clearly just to raise tax and possibly advantage large consultancies.

Even comparing with the small number of permies who stay away during the week, at least they normally have enough job security to choose to relocate if they want to in order to cut travel costs. Nobody sane would relocate a family on the back of a 3 month contract to cut commute costs. IR35 contractor <> permie.

[MrMarkyMark]

Large consultancies are allowed to treat this as business travel. IR35 caught contractors on the other hand are not, as it would be treated as home to work travel (normal commuting). So even if you package it separately you'd still owe BIK on it so it would not "pass through".

This is why this being presented as levelling the playing field rings so false as it's the exact opposite. Conflating temporary worker rules with temporary workplace rules makes no sense, and is clearly just to raise tax and possibly advantage large consultancies.

Even comparing with the small number of permies who stay away during the week, at least they normally have enough job security to choose to relocate if they want to in order to cut travel costs. Nobody sane would relocate a family on the back of a 3 month contract to cut commute costs. IR35 contractor <> permie.

Good points, but not really surprising.
Governments and consultancies have always enjoyed a cosy relationship.

Lets not forget it was Price Waterhouse Coopers that came up with IR35.
Of course there was no conflict of interest there

I'm sure they all make large political donations, also.

[youngguy]

I was thinking of it from the other end of the spectrum - other consultancies will lump expenses on top of their consultant day rates - Senior Consultant would be charged out at £1,000 per day plus all reasonable expenses; that is, the end client coughs up the train fare, hotel bill, tax fare and so forth. If you can get that agreed, then you're on a good gig and it leaves you free to tax your normal up to higher rate pay and treat expenses as simply "pass-through" business expenses that you can invoice directly to client.

Would that count as income or show on self assessment?

I was thinking th client just books your hotel and travel tix on their internal systems in advance which is how it used to work when I was a permie civil servant.

[cojak]

When I was last in a PS contract (2010) it was £25pd less than I got in the private sector (£375 vs £400), I very much doubt that the rate has improved since then.

(I took it because 6 months on the bench was getting a bit tedious.)

[Ketto]

In summary - don't take on government work after April 2017 (as a minimum), an even better approach is to get out of any current government contracts asap as cients are going to start asking questions soon (some already have by the sounds of it). I have 12 years experience in the PS but have turned down two good offers from previous clients to move back into the private sector, it's impossible to know the impact of these proposals as the detail is just not there.

[blackeye]

Good points, but not really surprising.
Governments and consultancies have always enjoyed a cosy relationship.

Lets not forget it was Price Waterhouse Coopers that came up with IR35.
Of course there was no conflict of interest there

I'm sure they all make large political donations, also.

That would be completely against their anti bribery and corruption policies.