Staying in the same public sector contract after April 2017

[RonBW]

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.

It shouldn't be used for work involving the public sector - because you will either eat into your retained profits or will trade insolvently if there are no retained profits.

If you are inside IR35 in the public sector then nothing can be claimed as a business expense, not even the 5% allowance that is allowed outside the public sector. So you have no way to pay any mobile phone bill, insurance, stationery, heating, lighting, internet etc etc without either using your retained profit or trading insolvently if you are incurring expenses that cannot be paid from the business.

[RonBW]

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

So a social worker, moving from client to client, choosing when they work, where they work, and having no supervision, direction or control over what they do, being forced to use an umbrella company doesn't meet that definition?

How about a freelance counsellor who is engaged by the NHS?

[breaktwister]

It shouldn't be used for work involving the public sector

But what if the contract is pre-existing and straddles the 6th April? I guess all contracts need to be cancelled and renegotiated (or simply cancelled and walk away)?

[northernladuk]

So a social worker, moving from client to client, choosing when they work, where they work, and having no supervision, direction or control over what they do, being forced to use an umbrella company doesn't meet that definition?

How about a freelance counsellor who is engaged by the NHS?

Put the OPs context back in that he should shut the Ltd just because he's got one gig in the PS. That was the point.

[breaktwister]

I can't read all 122 pages of this thread right now so apologies if this has already been answered: but what is the mechanism by which public bodies need to inform HMRC of the details of "inside/outside" assessments? I know that there is a tool but I read here that the tool is only advisory.

[seeourbee]

http://www.contractorcalculator.co.u...2410_news.aspx

[cojak]

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?

Oh yes, and why do you think there's a sudden glut of contracts for HMRC??

[londonlad]

In my opinion the cheaper, effective and efficient way for HMRC is to provide amnesty to all contractor by not investigating retrospective. They could ask the contractor to pay the levy of say £2000 to avail this option. Even if say 50000 contractor accept this option, it will net them very good sum without going through the hassle of investigation, tribunal etc....

[barrydidit]

In my opinion the cheaper, effective and efficient way for HMRC is to provide amnesty to all contractor by not investigating retrospective. They could ask the contractor to pay the levy of say £2000 to avail this option. Even if say 50000 contractor accept this option, it will net them very good sum without going through the hassle of investigation, tribunal etc....

Sweetheart deals only apply to those who can afford the smartest lawyers. Think Google/Starbucks/Amazon.

[rocktronAMP]

Is that before or after they resign when they can't make the move to Croydon !?

I thought the Home Office was down in Croydon near that passport office building across the dual carriageway..