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

[jamesbrown]

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.

Yep. If the briefing is accurate, I'm not sure what they intend by "new guidance" and how this would impact that ratio (without a broader legislative change), but public bodies are increasingly savvy in this area and the impact may be far more muted than they anticipate.

[VectraMan]

Hello, I fear it is the beginning of the end of contracting as we know it.

Not again!

Perhaps it's as simple as introducing a time limit you can work for one client. If you define the whole NHS as one client for example, then it's going to catch a lot of people, as well as the Paxmans of the world, but not hurt those of us that do work for multiple clients.

[TheFaQQer]

Perhaps it's as simple as introducing a time limit you can work for one client. If you define the whole NHS as one client for example, then it's going to catch a lot of people, as well as the Paxmans of the world, but not hurt those of us that do work for multiple clients.

But will probably hurt anyone who is brought in to deliver a complex project and then leave. Or shaft the project because they will do the first two years (or whatever that time period is) and then leave the project. Or shaft both project and taxpayer because the client will be forced into using a consultancy, who then get contractors in to get round the rule.

Penalising a business for providing a good service to their clients seems a strange way to encourage economic growth.

[dogzilla]

I'm not worried about tax changes impacting contracting, any impact will be short term whilst the market readjusts. Businesses will still need contract workers, so the demand will be there and where there is a will, there is a way.

In my opinion the only significant risk to contract working is if the government tries to remove employment protections by allowing companies to hire/fire short term/temporary workers. E.g. if they remove certain rights and regulations which currently apply to permanent employees. Once permies become more like contractors, the rates for contractors will diminish very quickly.