More than 2,000 'off payroll' civil servants face tax probe

[Scoobos]

Ironically Hector is likely to look into those cases and say nothing to see here! Now lets move on to the nasty private sector where the lines are far more blurred.
...

and WHS +1

[DodgyAgent]

Read between the lines...

Here you go :-





































. The end

[AtW]

On topic - This is all smoke and mirrors - the fact that the language says "Legally avoided" and trys to infer that someone could be held liable for 10 years backpayments.

If they are inside IR35 then it's unlikely they avoided anything other than paying tax due on time - for that they'll have to pay hefty fines and interest.

[TimberWolf]

No investigation into ICT Bob hirers avoiding tax then.

[AtW]

No investigation into ICT Bob hirers avoiding tax then.

What tax does that violate?

It's immigration abuse, equivalent of economic dumping but not primarily tax abuse.

[northernladuk]

Ironically Hector is likely to look into those cases and say nothing to see here! Now lets move on to the nasty private sector where the lines are far more blurred.

Some of the most clearly defined and bounded pieces of work have come from the Home Office...

Need own kit
No time sheets, sign offs on documentation instead
Risk and Reward
No Moo

Had it all with great rates as well. Yes those civil servants will be shaking in their boots...

I think it is even simpler than this TBH. This isn't about contractors this is more about the higher level guys manipulating the situation to suit themselves. A clearly full time roll becomes a contractor one becauce of internal handshakes which is blatent. Where there is a need to bring a temp consultant from outside for a temp position is a valid requirement and will be harder to prove.

I think once this has gone through we will be surprised how blatant this is in senior positions.

[Bumfluff]

Might go our way in the end, as the public services most productive / useful people are probably contractors, and contractors will now start leaving on mass or won't want to touch new public sector gigs at all.

I was talking to a contractor last week who is public service and they forced to him to go permy because of all this, the guy now has totally changed his atitude to work and does the minimum he can get away with.

[TimberWolf]

What tax does that violate?

It's immigration abuse, equivalent of economic dumping but not primarily tax abuse.

They use every tax fiddle going AFAIK. For example small salary and large tax free allowances, state sponsored.

Indian IT workers on an intra company transfer visa pay very little tax and national insurance.
Comment: UK Big Business exploits visa loophole to decimate IT jobs - Onshoring abuse continues as Cameron ponders immigration cap | TechEye

[AtW]

They use every tax fiddle going AFAIK. For example small salary and large tax free allowances, state sponsored.

I suppose you got a point on that.

[TimberWolf]

I suppose you got a point on that.

A bit more digging indicates they don't pay any NI at all, nor do their sponsors:

Financial Advantages of ICTs

The three main advantages are:

a) No National Insurance is payable for the first year by either the employer or the employee.

b) Accommodation allowances can make up to 30% of the salary. Other "cost of living" allowances mean that over 70% of the salary can be in the form of allowances. These allowances are not subject to income tax for the first two years.

c) The salary offered is supposed to be consistent with the going rate in the UK so as to prevent British workers being undercut. For this purpose, each Standard Occupation Code (SOC) has a minimum salary[3]. However, the UKBA accepts the lower quartile of salaries based on the UK as a whole. Thus it is perfectly legitimate to offer a salary for a job in an expensive area like London based on the bottom quartile of salaries for the whole of the UK.

Migration Watch UK - Employment - Intra Company Transfers (3.15)
Offshore IT workers in the UK avoid paying taxes but are not breaking the law - Inside Outsourcing