Staying in the same public sector contract after April 2017

[SuperZ]

Another thing to consider here is if you're deemed inside IR35 for one contract, you're highly likely to be working in a similar way on other contracts. I wouldn't be surprised if those who fall for this and work inside IR35 come under closer HMRC scrutiny - someone running a proper business would probably not have taken the inside IR35 contract.
Switching between using an umbrella and your own co depending on the contract will look dodgy.

[SueEllen]

Another thing to consider here is if you're deemed inside IR35 for one contract, you're highly likely to be working in a similar way on other contracts. I wouldn't be surprised if those who fall for this and work inside IR35 come under closer HMRC scrutiny - someone running a proper business would probably not have taken the inside IR35 contract.
Switching between using an umbrella and your own co depending on the contract will look dodgy.

This is not true at all.

[eek]

Another thing to consider here is if you're deemed inside IR35 for one contract, you're highly likely to be working in a similar way on other contracts. I wouldn't be surprised if those who fall for this and work inside IR35 come under closer HMRC scrutiny - someone running a proper business would probably not have taken the inside IR35 contract.
Switching between using an umbrella and your own co depending on the contract will look dodgy.

Utter rubbish. HMRC know that each contract, heck each day in a contract, is different.... That's the reason why IR35 is such a pain for them every contract has to be investigated individually..

The only reason we expect HMRC to go retrospective for people who remain in April is because its the SAME contract with two people making different decisions based on the same evidence - and they can use that against the contractor... Even then its only because we know its a very simple report to generate that means we suspect HMRC will run it...

[SuperZ]

Have to disagree. HMRC are out to get the gig worker regardless. Inside IR35, you're likely to be working in the same way on other contractrs regardless of what the actual contract states. ANd i'm not talk retrospective but from that moment on closer scrutiny. Focusing on those who were caught by IR35 recently will likely get a favourable result for HMRC than someone not IMO.

My opinion anyway. Take your 'I'm a contractor' hats off for a moment and put a tax grabbing hat on

[cojak]

Have to disagree. HMRC are out to get the gig worker regardless. Inside IR35, you're likely to be working in the same way on other contractrs regardless of what the actual contract states. ANd i'm not talk retrospective but from that moment on closer scrutiny. Focusing on those who were caught by IR35 recently will likely get a favourable result for HMRC than someone not IMO.

My opinion anyway. Take your 'I'm a contractor' hats off for a moment and put a tax grabbing hat on

But we are not gig workers. Gig workers pick up a short-order piece of work, do it and pick the next order.

We do contracts which last months, and have been working this way for 20+ years.

Lumping contractors with the gig economy is wrong.

[eek]

But we are not gig workers. Gig workers pick up a short-order piece of work, do it and pick the next order.

We do contracts which last months, and have been working this way for 20+ years.

Lumping contractors with the gig economy is wrong.

True but thanks to IR35 we've spent the past 17 years playing around with the same tricks that companies use to avoid having to physically employ workers. Hence its no wonder people get confused and think we are one and the same....

[marius123]

So apparently HMRC digital have declared all of their contractors (via multiple providers; agencies and consultancies) inside as of last night...

[psychocandy]

So apparently HMRC digital have declared all of their contractors (via multiple providers; agencies and consultancies) inside as of last night...

So not even following their own latest directive.

[Fred Bloggs]

True but thanks to IR35 we've spent the past 17 years playing around with the same tricks that companies use to avoid having to physically employ workers. Hence its no wonder people get confused and think we are one and the same....

We're real businesses, aren't we? (Eek, might be, but what about the other 99+ %?)

[northernladyuk]

Email from Robert Half today.

Good afternoon



Please forgive my direct approach.



As you will no doubt be aware that the Government’s announced in the 2016 Autumn Statement that it would reform the intermediaries rules, often known as IR35.



The government has decided that from 6 April 2017, responsibility for deciding whether the “off payroll working in the public sector” rules apply to a contract in the public sector and deducting and paying income tax and national insurance contributions (NIC’s) moves from the personal service company (PSC) / other intermediary, to the public sector body, the recruitment agency or third party engaging the PSC.



The impact of these changes to you is that where we determine that these new rules apply, we will deduct and pay appropriate income tax at basic rate and NICs to HM Revenue and Customs. The new rules apply to contracts entered in to before 6 April 2017 and to payments made on or after that date. Therefore, work completed on your Assignment before 6 April but paid after this date, will fall within the new rules and we will be required to make appropriate deductions.



Many of our Public Sector clients are concerned around the impact of these changes and we are already seeing a shift from Ltd Company contracts to PAYE requirements. Whilst there will still be a demand for Ltd Company resource and indeed you can continue to engage on this basis, we are looking to build a bench of ‘PAYE friendly’ contractors for those clients who simply will not engage otherwise. As such, if you are available at short notice and happy to work in the Public Sector on a PAYE basis, please do send over your latest CV and a quick overview of your availability. Alternatively, if you know of other individuals who may be interested, please feel free to forward my details within your network.



Naturally, if you wish to continue to operate on a Ltd Company basis, Robert Half will still continue to work with you and will brief you on those roles, however the appropriate deductions will need to be made at source.



I apologise if this e-mail has reached you in error.



Best regards,