Capita CL1 government contract - should I take it

[Sausage Surprise]

I finished the previous contract on 31 March, and have been on bench since then. Last year I has 3 offers to choose from but this year still nothing.

The only contract I have managed to bag is with a government agency in wales and although there is a recruitment agency involved who are dealing with me, the client only deals with capita who then deal with the recruitment agency and who then deal with me.

I have never done a govt. contract before, but the amount if paperwork sent me was just too much, there was a BET document, HMRC due diligence checklist, disclosure scotland, certified copy of passport, and some other declarations to sign. Capita are due to raise a work order (don't know what that is) and then the agency will send me their contract.

I remember reading here that people generally avoid govt contracts due to the hassle involved and high risk of IR35.

I am not sure if there is a high risk of IR35, am I getting into something which will prove difficult later on?

I have found this link:
How to handle Contingent Labour One contracts :: Contractor UK


The problem is, this is the only contract I have managed to find so far, not sure if I should go for it or not.

Did they ask you to fill in the BETs?

http://forums.contractoruk.com/busin...completed.html

[new2c]

Did they ask you to fill in the BETs?

http://forums.contractoruk.com/busin...completed.html

Yes, they did ask me to fill in the BET and sign the declaration based on the score obtained in the BET.

Also, they have a HMRC due diligence document which I have not filled in yet, but am told that I will need to fill it in within a week of starting.

[SlipTheJab]

I avoid public sector contracts like the plague, just nor worth the hassle IMO.

[new2c]

I avoid public sector contracts like the plague, just nor worth the hassle IMO.

Is it due to high risk of IR35 or something else?

[SlipTheJab]

Is it due to high risk of IR35 or something else?

In the main yes, and also Cr@pita.

[new2c]

In the main yes, and also Cr@pita.

Are you dealing with Capita directly, or is there an agency involved?

[BolshieBastard]

Nonsense. They are only 100% in the most egregious cases where the contractor knew they were inside, ignored this, and furthermore concealed it. No penalties are due if reasonable care is taken, and a professional review demonstrates reasonable care. Interest would be due, but look at the success rate of investigations FFS. None of this undermines the need for due diligence and record keeping, but your assertions about penalties are simply wrong.

No they are not.

[jamesbrown]

No they are not.

https://www.gov.uk/ir35-enquiry-by-h...-and-sanctions

and

'Reasonable care' with IR35 to cost contractors :: Contractor UK

The penalty regime is based on behavior and, specifically, whether "reasonable care" has been taken, i.e. a professional review of the contract and working practices.

[BolshieBastard]

https://www.gov.uk/ir35-enquiry-by-h...-and-sanctions

and

'Reasonable care' with IR35 to cost contractors :: Contractor UK

The penalty regime is based on behavior and, specifically, whether "reasonable care" has been taken, i.e. a professional review of the contract and working practices.

As my original post said, penalties may be 100%.

The first link you provided say this "If you’re found to be within IR35 following an HMRC enquiry, you must pay HMRC the tax and National Insurance contributions due, as well as any interest due on these amounts..

If you have beem 'economical' with the truth providing info for the IR35 professional review to get a pass including working conditions, you're likely to fall foul of 'reasonable care.'

If you want to believe there's no FUD on behalf of IR35 by HMRC, then good for you. Dont come crying here when you do get stiffed though.

[jamesbrown]

As my original post said, penalties may be 100%.

The first link you provided say this "If you’re found to be within IR35 following an HMRC enquiry, you must pay HMRC the tax and National Insurance contributions due, as well as any interest due on these amounts..

If you have beem 'economical' with the truth providing info for the IR35 professional review to get a pass including working conditions, you're likely to fall foul of 'reasonable care.'

If you want to believe there's no FUD on behalf of IR35 by HMRC, then good for you. Dont come crying here when you do get stiffed though.

Which part of this didn't you understand?

Interest would be due, but look at the success rate of investigations FFS.

You read somewhere that the penalties "could be up to 100%", but you knew nothing about the circumstances under which they applied. Hint: how many IR35 cases have been lost and penalties incurred?

Personally, I'd avoid public sector work because the rates are low and the hassle is high, including the increased risk of scrutiny for IR35, but certainly not because of the penalty regime. Having a professional contract review is a prerequisite, regardless of whether you're looking for public or private sector work. Given that, why on earth would you fabricate anything?; you may as well provide a fake contract FFS (or save the money and not bother with a review).