Staying in the same public sector contract after April 2017

[rob s]

... and all this boils down to a tool that nobody has actually used for a determination yet.

or that even exists in a production-ready state

[breaktwister]

What happens to the PSC Ltd if a PS client determines "inside"? Is the PSC Ltd automatically defunct?

If an individual who is a director of a PSC is suddenly declared as an employee of another organisation and income, which previously would have been income to the PSC and subject to CT, is now "personal income" liable to PAYE etc. Where does all this leave the function of the Ltd? My personal reasoning is that under such circumstances the Ltd has no income and should be shutdown.

[b0redom]

My agency said that 'an algorithm can't make a legal ruling' anyway, so it's still just an interpretation.

[northernladuk]

What happens to the PSC Ltd if a PS client determines "inside"? Is the PSC Ltd automatically defunct?

If an individual who is a director of a PSC is suddenly declared as an employee of another organisation and income, which previously would have been income to the PSC and subject to CT, is now "personal income" liable to PAYE etc. Where does all this leave the function of the Ltd? My personal reasoning is that under such circumstances the Ltd has no income and should be shutdown.

So you reached the end of your contracting career? Thrown in the towel? Shut the company down? No longer a contractor.....

Honestly? Bit knee jerk isn't it?

There could be issues working as a contractor again for the next 2 years in certain circumstances.

How do you come to reasoning when you start the post with a question and don't know the answer?

[malvolio]

My agency said that 'an algorithm can't make a legal ruling' anyway, so it's still just an interpretation.

Given the case law on which IR35 sits, where there have been a few caught verdicts and one that wen from not caught to caught with little else changing and every one being decided on a subjective assessment of a single and particular set of circumstances, there is not chance in hell the tool can be definitive.

OTOH I've seen on LinkedIn that some beta testers are being surprised at the number of test cases that are coming up as not caught. Perhaps there's a bug in the code...

[MrMarkyMark]

Given the case law on which IR35 sits, where there have been a few caught verdicts and one that wen from not caught to caught with little else changing and every one being decided on a subjective assessment of a single and particular set of circumstances, there is not chance in hell the tool can be definitive.

OTOH I've seen on LinkedIn that some beta testers are being surprised at the number of test cases that are coming up as not caught. Perhaps there's a bug in the code...

They should have offshored the coding work to TATA, it would bring up 100% caught every time

[seeourbee]

So you reached the end of your contracting career? Thrown in the towel? Shut the company down? No longer a contractor.....

Honestly? Bit knee jerk isn't it?

There could be issues working as a contractor again for the next 2 years in certain circumstances.

How do you come to reasoning when you start the post with a question and don't know the answer?

He didn't say that. He can still be a contractor but without operating through a Ltd Co.

[northernladuk]

He didn't say that. He can still be a contractor but without operating through a Ltd Co.

In name only surely and only in the PS... which isn't really a contractor as we know it.

[jamesbrown]

Perhaps there's a bug in the code...

It's all going to come down to the weightings, and they can switch those out as needed. Remember, the target is 90% caught. They're in a "calibration" period.

[londonlad]

I suppose there may be contractors on HMRC sites as well. Aren't they on higher risk of being investigated as HMRC very well know about contract and working practices?