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  1. #1

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    Default Impact analysis of Public Sector IR35

    Interesting report from ContractorCalculator about the impact of the rules changes in the public sector

    Key figures from the 1300 survey responses:

    27% of contractors left the public sector. Of these, 61% left because they refused to work inside IR35.
    47% of departments lost at least 1/4 of their contractors. 24% lost more than 1/2 their contractors, and 7-9% lost all or nearly all of their contractors.
    52% said that the contractors who have left have still not been replaced. 15% had been replaced by big consultancies.
    70% said that their projects were delayed as a result.

    52% said they will never accept an inside IR35 role in the public sector again. 46% said they would, but only if there was a rate increase to cover the extra tax.

    21% ruled out working in the public sector regardless of IR35 status.
    40% of NHS workers said they were considering quitting contracting completely.
    Last edited by Contractor UK; 19th September 2017 at 15:33.
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  2. #2
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    Quote Originally Posted by TheFaQQer View Post
    Interesting report from ContractorCalculator about the impact of the rules changes in the public sector

    Key figures from the 1300 survey responses:

    27% of contractors left the public sector. Of these, 61% left because they refused to work inside IR35.
    47% of departments lost at least 1/4 of their contractors. 24% lost more than 1/2 their contractors, and 7-9% lost all or nearly all of their contractors.
    52% said that the contractors who have left have still not been replaced. 15% had been replaced by big consultancies.
    70% said that their projects were delayed as a result.

    52% said they will never accept an inside IR35 role in the public sector again. 46% said they would, but only if there was a rate increase to cover the extra tax.

    21% ruled out working in the public sector regardless of IR35 status.
    40% of NHS workers said they were considering quitting contracting completely.
    that 40% NHS figure doesn't provide a concrete figure. is that 40% leaving contracting and returning to full time employment within the NHS or 40% quitting working for the NHS.

    The former is of course what NHS Improvement are hoping for, the latter is what we suspect and NHS Improvement fear but those numbers don't answer the real question....
    Last edited by Contractor UK; 19th September 2017 at 15:33.
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    17% quitting contracting due to reforms. HMRC will be patting themselves on the back about that one.... And opening a crap load of cases to look at them.

    It's interesting to read but I'm kinda struggling with it being pages of stats I can't really qualify so just numbers. Am I the only one thinking this?
    Last edited by northernladuk; 4th September 2017 at 10:59.
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    Quote Originally Posted by northernladuk View Post
    17% quitting contracting due to reforms. HMRC will be patting themselves on the back about that one.... And opening a crap load of cases to look at them.

    It's interesting to read but I'm kinda struggling with it being pages of stats I can't really qualify so just numbers. Am I the only one thinking this?
    How many of those 17% retired, emigrated or returned to their country of origin?
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    Quote Originally Posted by SueEllen View Post
    How many of those 17% retired, emigrated or returned to their country of origin?
    Good point and that's why I'm struggling to understand the figures.

    I wonder if the figures would change if they did the poll again. How many of the 61% that said they wouldn't work inside would now consider it if the right gig came up and they are sitting on the bench. I would probably have said the same back in the day but would accept an inside gig given the right circumstances now.
    Last edited by northernladuk; 4th September 2017 at 11:47.
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    Quote Originally Posted by northernladuk View Post
    17% quitting contracting due to reforms. HMRC will be patting themselves on the back about that one.... And opening a crap load of cases to look at them.
    The ones that stayed and took the contract change are completely ****ed but the ones that left demonstrated that there was no MOO to accept work.

    Its even how HMRC handled it internally...

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    Quote Originally Posted by bobspud View Post
    The ones that stayed and took the contract change are completely ****ed but the ones that left demonstrated that there was no MOO to accept work.

    Its even how HMRC handled it internally...
    I'm hoping HMRC understand MoO a little better.
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    Quote Originally Posted by northernladuk View Post
    I'm hoping HMRC understand MoO a little better.

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    According to HMRC, no contractors are leaving the public sector because of IR35 and it's having no detrimental impact on staffing levels.

    HMRC denies IR35 reforms to blame for public sector IT project delays and cancellations

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    To be fair there were plenty of cancellations and delays going on before it hit.

    My last client had the risk covered and flexed the work to suit. They were pretty proactive about it early on (except for the handling of it when it actually hit) so it was a messy time but I'm not aware it actually caused any cancellations or delays. Just a horrible time for those left. Other clients might have had different experiences of course.
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