Crackdown on personal service companies could raise £400m in tax

[DaveB]

Yes, it's called agile and it's done on a day to day basis. The era of 6 months scoping and specification followed by two years development only exist in the public sector where there's unlimited tax payers money to fund it.

https://en.wikipedia.org/wiki/Agile_...re_development

Not any more. Agile is being pushed out into the public sector across the board. Unfortunately the people pushing from the center (GDS, I'm looking at you) dont really undertstand what it is or how it works. Somene told the Minister it was a good thing so now they are telling everyone else to do it.

The devs at Client A are acticvly using it and have now got a handle on how it works, and are producing stuff that works. The problem is that everyone else is being expected to use it as well for non dev workstreams and frankly it's causing confusion in a lot of cases.

[seeourbee]

What's FP?

When I dealt with CGI, that project overran as did HP's, but you address that with a contact extension (or indeed new contract) to allow for the change in specs. Either way you're still delivering a product/deliverable without option for this to run 'forever' which is what ir35 aims to stop.

[DaveB]

What's FP?

When I dealt with CGI, that project overran as did HP's, but you address that with a contact extension (or indeed new contract) to allow for the change in specs. Either way you're still delivering a product/deliverable without option for this to run 'forever' which is what ir35 aims to stop.

Fixed Price

[MarkT]

There's a definite tendency on CUK to assume that all contractors are in IT or operate in a particular way, and perhaps the majority are/do, but there are many that don't.

Exactly - I have been running Programme Offices for some time, often I'm the first in on a large project alongside a permie Programme Manager, I set everything up, hire the staff, run things, shut it down and turn off the lights before I leave. There is no intention to keep me and sometimes these gigs run into 2/3 years.

It's the nature of the beast, not every type of contracting is IT development. I'd say there were as many project manager types as there are anything else nowadays. Hired for a project, then got rid of. Why would you want to make such people perm and put them on your books? In the financial sector Solvency II was a great example where people with project experience were brought in to put in place regulatory requirements, once complete, never to be done again.

[lilelvis2000]

I actually wouldnt have a problem with a limit of 52 weeks or less. The majority of projects and other IT work that Ive been involved with have rarely gone over 52 weeks.One financial institution had a 52 week on site limit but the project last 14 months so they had to get internal dispensation to keep the contractors on.

Far too many contractors, and clients it must be said, think in terms of staying in situ for 3, 4 or more years. You're clearly integrated into the client organisation if you're on site for more than 12 months despite what some on here may say.

I count myself lucky that I work from my own office and have three clients and use all my own licences and equipment. Two of my clients aren't even in the UK. I work different days for each client and dictate to them when I can work for them this week. I'm hopeful this crap won't apply to me, but you never know.

[vetran]

Fixed Price

Variation & extras! Fill yer boots!

[LondonManc]

Just another thought with the one month rule, but am I correct in assuming that sole traders would be exempt from such a rule? Or are there other barriers to us becoming sole traders within IT, engineering and other areas where sole traders don't traditionally operate?

Just thinking that HMG may be looking to push us down this route as a reason to get your warchests reinvested in the economy as a whole rather than sat in your corporate account.

[d000hg]

Ltds are so popular not just for the tax reasons, but because ST is frowned upon. Many clients (or possibly agencies are the issue) won't work with STs. I believe it's due to liability or insurance fears but someone can fill in that blank for us

[Pondlife]

Just another thought with the one month rule, but am I correct in assuming that sole traders would be exempt from such a rule? Or are there other barriers to us becoming sole traders within IT, engineering and other areas where sole traders don't traditionally operate?

Just thinking that HMG may be looking to push us down this route as a reason to get your warchests reinvested in the economy as a whole rather than sat in your corporate account.

Ltds are so popular not just for the tax reasons, but because ST is frowned upon. Many clients (or possibly agencies are the issue) won't work with STs. I believe it's due to liability or insurance fears but someone can fill in that blank for us

IIRC if you're a sole trader and decide not to pay any NIC then HMRC can go after whomever was your employer i.e. the agency. By having a Ltd there is an intermediary between you and the engager.

[seeourbee]

Sole Traders pay both NI and Income tax. Lots of it.