Originally posted by philo
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Staying in the same public sector contract after April 2017
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The greatest trick the devil ever pulled was convincing the world that he didn't exist -
Originally posted by eek View PostAnd assuming the above is correct leaving on March 31st with a payroll on 4th/ 5th April is fine provided they meet that payroll date. It also gives them another month to determine if you are inside or outside and allow you to continue if outside..Comment
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Originally posted by philo View PostOr if company declare outside I think HMRC will have a smaller number to check on so could really scrutinise them and then face retrospective action.
I know there is always a chance of investigation into past contracts but its too risky to stay on
And you contradict yourself in the next sentence.
I think some people here overreact a bit - try to make it as safe as possible in PS and don't worry too much. By safe I mean have a contract determined outside by the client and an agency that pays as now.Comment
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Originally posted by LondonManc View PostSay as little as possible until the last day of your current contract. That should give you another couple of weeks for them to establish a determination. As long as you're not afraid to walk and lots more follow suit, the situation should rectify itself in a few months anyway.Comment
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What about VAT?
Just curious to know.
If HMRC deemed somebody inside IR35 and want to charge them tax and NI as employee. what will happen to all the VAT being paid to HMRC.
Does the company get VAT refund for the entire contract?
HMRC is in receipt of VAT because PSC is charging the end client. The end client here is the consumer of the service and therefore I guess can't claim back the VAT. HMRC will not have that income if they classify the contractor to be inside IR35 as employee don't charge VAT.
Anyone got any idea?Comment
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Originally posted by londonlad View PostJust curious to know.
If HMRC deemed somebody inside IR35 and want to charge them tax and NI as employee. what will happen to all the VAT being paid to HMRC.
Does the company get VAT refund for the entire contract?
HMRC is in receipt of VAT because PSC is charging the end client. The end client here is the consumer of the service and therefore I guess can't claim back the VAT. HMRC will not have that income if they classify the contractor to be inside IR35 as employee don't charge VAT.
Anyone got any idea?merely at clientco for the entertainmentComment
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It might be an idea every contractor who has served notice to drop a note to their MP pointing out why. As said in the previous post, the biggest issue for me is the removal of expenses. That ties me into local work, where the rates are dire. I'm not in the public sector, but still see this as being the fore runner to it being implemented in the private sector.
I live in a very rural area and while my last contract was local I'm expect my next to require commuting at the very least, it not B&B etc.
Although you'll also find that MP's are less responsive to this issue as they feel hard-done-by with their expenses :-)Comment
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Originally posted by b r View Post+1
I live in a very rural area and while my last contract was local I'm expect my next to require commuting at the very least, it not B&B etc.
Although you'll also find that MP's are less responsive to this issue as they feel hard-done-by with their expenses :-)merely at clientco for the entertainmentComment
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Originally posted by eek View PostVat is irrelevant here. It is collected on behalf of hmrc and the contractor will continue to collect it on behalf of hmrc even if declared inside. The example I used on the FAQ of someone on £300 a day still has them receiving £300 a week in vat but only £910 (from memory) after tax is withheldThe greatest trick the devil ever pulled was convincing the world that he didn't existComment
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So heres a question.
PSO decides your outside of IR35 and relays this message to Agency.
Agency continue to pay you via your PSC as previously.
There is nothing in the current legislation that puts legal liability on the PSO to absolutely have "got that right".
Other than the agency have to "accept" that determination, which they may be jumpy about doing as they are liable for any tax.
So surely a PSO can "short circuit" this all by determining people to be outside of IR35?Comment
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