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

[speling bee]

Can you point me to some legislation which captures the legal definition of this particular vehicle please ?

I've never heard of anyone being able to create or register a PSC. What is it exactly ?

We have all been round this a few times and you are probably right from a legal perspective. But the problem is my end client will say that MyCo is a PSC and telling them it is not defined in legislation will not help me.

[Sausage Surprise]

I could be missing something here but would you be an employee of the consultancy and therefore subject to PAYE or would they pay your Ltd Co?? If it's the latter I can't see how this would get around anything as the purpose of the changes was to ensure that someone working in the public sector who was inside IR35 wasn't operating outside and therefore depriving the treasury

You become an "Associate" of the consultancy - not a PAYE employee.

[LisaContractorUmbrella]

You become an "Associate" of the consultancy - not a PAYE employee.

Thanks SS So what's the tax structure?

[speling bee]

Thanks SS So what's the tax structure?

Ltd / low salary / CT / divis etc. Exactly like working via an agency.

[LisaContractorUmbrella]

So the end result will be exactly what the Government are trying to avoid - can't see that working too well then

[Sausage Surprise]

So the end result will be exactly what the Government are trying to avoid - can't see that working too well then

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.

[speling bee]

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 you are working for an agency. I believe it will cut no ice.

[SueEllen]

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.

WHS

As far as the government agency is concerned you are a worker from the consultancy so they don't know whether you are an employee of the consultancy or not.

I've worked for some consultancies like this with private sector end-clients. When I've met the end-client they have never asked whether I'm an employee of the consultancy or not even after I've signed into the visitor's book with a different company name.

[speling bee]

WHS

As far as the government agency is concerned you are a worker from the consultancy so they don't know whether you are an employee of the consultancy or not.

I've worked for some consultancies like this with private sector end-clients. When I've met the end-client they have never asked whether I'm an employee of the consultancy or not even after I've signed into the visitor's book with a different company name.

Probably not that simple. I work regularly as an associate. The consultancy is on a procurement framework and their % mark up is pre-defined just as an agency's is. The end client knows full well.

[SueEllen]

Probably not that simple. I work regularly as an associate. The consultancy is on a procurement framework and their % mark up is pre-defined just as an agency's is. The end client knows full well.

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