Public Sector forcing PAYE and all that - Consultancies a way around this?

[LisaContractorUmbrella]

But you could argue that you are working for the private consultancy and NOT the public sector. Therefore how you are structuring your tax affairs is none of their business.

You could argue that definitely but the guidance states that, if you are self-employed for tax purposes you would need to evidence the correct payment of tax before being engaged beyond the 6 month threshold

[Sausage Surprise]

You could argue that definitely but the guidance states that, if you are self-employed for tax purposes you would need to evidence the correct payment of tax before being engaged beyond the 6 month threshold

Why would they ask for it if you were employed by the consultancy? Would they ask all of the consultancy's staff for this evidence?

[speling bee]

Depends on how the consultancy arranges the contract and whose offices you mainly work from.

I think if you as an individual are at a client for > 6 months the question will be asked.

[LisaContractorUmbrella]

Why would they ask for it if you were employed by the consultancy? Would they ask all of the consultancy's staff for this evidence?

If you are employed by the consultancy you shouldn't be receiving divs so the consultancy would probably be questioned as to whether all staff are paid through PAYE only before agreement was signed with them

[speling bee]

Why would they ask for it if you were employed by the consultancy? Would they ask all of the consultancy's staff for this evidence?

I think in the first instance they will ask the consultancy who is and isn't a consultancy employee.

[speling bee]

I have a keen interest, because the Cabinet Office has been all over my current client over contractors for months.

[speling bee]

And another thing...

Interesting discussion as always. I think however that we are used to a mindset where we seek a legally defensible position. This cuts through all that because it is contractual not legal. The client must be satisfied so our clever arguments hold little sway.

[Moscow Mule]

You could argue that definitely but the guidance states that, if you are self-employed for tax purposes you would need to evidence the correct payment of tax before being engaged beyond the 6 month threshold

I'm the salaried employee (& director) of a Ltd co, not self employed.

If thats their guidance, they don't know their arse from their elbow...

[speling bee]

I'm the salaried employee (& director) of a Ltd co, not self employed.

If thats their guidance, they don't know their arse from their elbow...

It is not their guidance. My post at 16:16 contains a link and extracts: http://forums.contractoruk.com/busin...acting-11.html

[LisaContractorUmbrella]

I'm the salaried employee (& director) of a Ltd co, not self employed.

If thats their guidance, they don't know their arse from their elbow...

Well that's a given but unfortunately they're making up the rules