front page of yesterday's telegraph --PSC loop hole being closed

[ChadGates]

on the front page of the telegraph, the closure of the "PSC loop hole" is apparently going to be announced in the budget ---for Public Sector workers.

[TheMrs]

on the front page of the telegraph, the closure of the "PSC loop hole" is apparently going to be announced in the budget ---for Public Sector workers.

Yes saw that. Was surprised no comments on here already. Would love to hear what advisors and those in the know think will happen next. If nothing else it will be interesting seeing how it is applied for the public sector so we can take a view as PSCs in commercial world. Always something to look forward to!

[LondonManc]

Would love to know what a PSC is other than a tick box

[jamesbrown]

Yes saw that. Was surprised no comments on here already. Would love to hear what advisors and those in the know think will happen next. If nothing else it will be interesting seeing how it is applied for the public sector so we can take a view as PSCs in commercial world. Always something to look forward to!

There are multiple threads. For example. I dare say we'll need a mergefest before long.

[mudskipper]

Yes saw that. Was surprised no comments on here already. Would love to hear what advisors and those in the know think will happen next. If nothing else it will be interesting seeing how it is applied for the public sector so we can take a view as PSCs in commercial world. Always something to look forward to!

IPSE's view is here

[IR36Contractor]

Hello, I fear it is the beginning of the end of contracting as we know it. He threw a dummy with the pensions guff, but really he was gunning for us all the time.
But I don't understand the focus on public sector, tv stars and footballers. Is that part of a propaganda war to garner public sympathy from Telegraph readers and the like?

[SueEllen]

Hello, I fear it is the beginning of the end of contracting as we know it. He threw a dummy with the pensions guff, but really he was gunning for us all the time.
But I don't understand the focus on public sector, tv stars and footballers. Is that part of a propaganda war to garner public sympathy from Telegraph readers and the like?

Yep.

Though the more tax code he writes the more loopholes will be found.

Public sector equals every ones money.

TV stars and footballers are high profile.

Btw The loophole with TV stars is to work for a different TV company who sells the program to the Beeb. Public sector have a number of loopholes.

[jamesbrown]

Hello, I fear it is the beginning of the end of contracting as we know it. He threw a dummy with the pensions guff, but really he was gunning for us all the time.
But I don't understand the focus on public sector, tv stars and footballers. Is that part of a propaganda war to garner public sympathy from Telegraph readers and the like?

We'll have to wait. It could be one of at least two things: 1) PR; or 2) use of the public sector as a guinea pig. I suspect it's the latter, as they can bring it in more quickly for the public sector, monitor it more easily, and they can deal with the wrath of the private sector later (after 23 June). However, we know from experience not to read too much into these headlines. The more detailed reports of the briefing appear to point to as assessment by the client (public body in the first instance), based on updated guidance, so it's unlikely to be a blanket ban or even a highly simplified set of criteria. I'd expect an IR35 consultation along with the announcement, with a preferred option similar to the thrust of the discussion document. OTOH, they may have decided already and simply opted for a staged rollout. Either way, this is likely to continue for several years, as there are other changes in the pipeline (OTS). However, the latter changes are more likely to be focused on the remaining "10%" of contractors they see as being "legitimate". Fun times

[jamesbrown]

Btw The loophole with TV stars is to work for a different TV company who sells the program to the Beeb. Public sector have a number of loopholes.

One of many reasons this will be in the private sector before long. Much like the T&S changes, I suspect they're doing it in stages, at the risk of some short-term loopholes and increased complexity.

[TheFaQQer]

We'll have to wait. It could be one of at least two things: 1) PR; or 2) use of the public sector as a guinea pig. I suspect it's the latter, as they can bring it in more quickly for the public sector, monitor it more easily, and they can deal with the wrath of the private sector later (after 23 June). However, we know from experience not to read too much into these headlines. The more detailed reports of the briefing appear to point to as assessment by the client (public body in the first instance), based on updated guidance, so it's unlikely to be a blanket ban or even a highly simplified set of criteria. I'd expect an IR35 consultation along with the announcement, with a preferred option similar to the thrust of the discussion document. OTOH, they may have decided already and simply opted for a staged rollout. Either way, this is likely to continue for several years, as there are other changes in the pipeline (OTS). However, the latter changes are more likely to be focused on the remaining "10%" of contractors they see as being "legitimate". Fun times

The Treasury figures from 2014 confirmed that 94% of "PSCs" operating in the public sector did so for legitimate reasons, so it would be an interesting exercise to see what the impact really would be in the public sector.