PCG article about War on public sector contractors

[Antman]

PCG article here

Do you think that you could see a move of contractors from public to private sector jobs? Maybe not, but either way I don't think it would be a good time to consider going into this area.

[cojak]

This won't be problem for those contractors working through umbrellas.

I won't be interested in public sector contracts in the future, however.

[Rabotnik]

My understanding is that it only applies to contracts >= 6 months, so surely they can sidestep it by using 3 month contracts? And the article says that contractors "will be made to operate IR35" - how is this a problem? Surely they are doing this already? I'm working for part of the NHS now - bunch of jobsworths creaking along to their pensions, and money being burnt left and right (let's buy everyone iPad 2's so we can spend our budget ).

[cojak]

I operate IR35 in as much as I ensure that I'm in business on my own account and therefore making it non-applicable to my contracts.

My last contract for the NHS certainly operated on those lines, but now they want you to be inside it irrespective of your working practices or the contract.

And once they've got you, they can point to other contracts that are the same and say "well if you were caught by IR35 for the NHS, you'll be caught for this contract".

HMRC don't worry too much about false logic or legal niceties...

[bobspud]

It says nothing about contracts through cap or the other normal culprits...

So presumably there will be a raft of contracts for the big consultancies to provide the staff that government would normally have to sort out themselves.

Or

There will be a simple move to statements of work that lasts a week or two short of 6 months followed by a holiday of a few weeks and a non contested contract for the next work package...

I have just started at a government agency. They will be stuffed every way to tuesday, the it department is 60% in the favour of freelancers and they won't stand a chance if the guys that they have walk off site.

[Bluenose]

From what I read, this all started because there were long term civil servant "permies" (non-IT staff) there on a pally nudge, nudge, wink long-term basis using, limited companies to avoid being PAYE.

Looks like a knee jerk reaction from HMRC, someone from on high has seen the bad press and has lit a torch under their arses.

But these individuals would surely stand out like a sore thumb during a basic contractor audit without even going near IR35. It smells like buck-passing.

Lax HR policy is the root cause of this problem and the fix does not lie with HMRC.

[cojak]

From what I read, this all started because there were long term civil servant "permies" (non-IT staff) there on a pally nudge, nudge, wink long-term basis using, limited companies to avoid being PAYE.

Looks like a knee jerk reaction from HMRC, someone from on high has seen the bad press and has lit a torch under their arses.

But these individuals would surely stand out like a sore thumb during a basic contractor audit without even going near IR35. It smells like buck-passing.

Lax HR policy is the root cause of this problem and the fix does not lie with HMRC.

Knee-jerk reaction by the Government, long-term game plan of HMRC

[tractor]

...

PCG article here

Do you think that you could see a move of contractors from public to private sector jobs? Maybe not, but either way I don't think it would be a good time to consider going into this area.

Talking of false logic, if you are affected by the above, perhaps you should read this other article on the PCG site and complain about the new 'procurement' practice of forcing suppliers into a detrimental business model regardless of whether they fit the criteria for IR35 or not.

Talk about left hand and right hand not knowing etc or joined up government lol

[BolshieBastard]

My understanding is that it only applies to contracts >= 6 months, so surely they can sidestep it by using 3 month contracts? And the article says that contractors "will be made to operate IR35" - how is this a problem? Surely they are doing this already? I'm working for part of the NHS now - bunch of jobsworths creaking along to their pensions, and money being burnt left and right (let's buy everyone iPad 2's so we can spend our budget ).

Seriously!? Nope, the recent changes to public sector contract applies to anyone with a rate of more than £230 a day and contracted for more than 6 months. So if you have 2 or more consecutive 3 monthers, you are within the remit.

How is it a problem? Again, are you serious? Under IR35, you're only allowed 5% as expenses and you'll pay far more tax and NI. Is that what you want to do?

In any event, it isnt just public sector that will be affected. I understand LTSB contracts now carry a clause that virtually demands you operate within IR35 and pay your fair share of tax.

[bless 'em all]

I understand LTSB contracts now carry a clause that virtually demands you operate within IR35 and pay your fair share of tax.

That's a bit rich coming from them isn't it?