Staying in the same public sector contract after April 2017

[malvolio]

FTFY.

Yep, brilliant idea. Happens all the time; my costs go up so a higher day rate is immediately agreed by the client.

Can I come and live in your world please...

[LondonManc]

Yep, brilliant idea. Happens all the time; my costs go up so a higher day rate is immediately agreed by the client.

Can I come and live in your world please...

New to petrol stations?

[missinggreenfields]

Who said they need to engage a Big Four employee? They can just get a contractor as before, only now the contractor pays more tax.

One thing they almost certainly won't do is engage a big four employee.

The presumption that they can get a contractor as before relies on contractors accepting the massive hit that they face - which is a big assumption to make.

[DaveB]

Yep, brilliant idea. Happens all the time; my costs go up so a higher day rate is immediately agreed by the client.

Can I come and live in your world please...

I'm not working in the PS now. If I was I would be renegotiating my contract when the changes come, in since it would need the existing contract to be cancelled and a new one issued to cover the new payment terms. If they don't want to pay the rate then I'll walk. If I get approached for PS contracts after that my rate will be adjusted to take account of the additional costs. If I don't get the gig fair enough. Plenty enough work elsewhere and I'd still be better value for money than some fresh faced Crapita graduate charged out at £1000 a day.

[DotasScandal]

The fact that more tax minus tribunal costs minus difference in engaging a big 4 consultancy minus cost of project delays is a huge negative number is lost on HMRC, sadly.

A cynic might say that the primary objective is not to "maximize the amount of tax collected" by HMRC, but to "maximize the amount of kickbacks collected" by those key people who attribute PS contracts.
From the original IR35 to contractor APNs to this "new and improved" IR35, everything seems designed more to clear the field for the benefit of big consultancies rather than maximizing revenue for HMRC (how much did IR35 bring in, again?). It's crony capitalism, pure and simple.

[jonnyboy]

First - sorry.. this is a post I put in the "Autumn statement" general discussion thread.. but nobody replied to it, so I am posting it here as well. Please don't ban/spank/kill me for doing so, I really need other peoples thought (and a decent calculator to work all this out)....

So, that didn't take long for the waves to go up and come down in the place that I am currently working... just got an email from my budget paying head manager, where they are offering to compensate me for the budget changes after 1st April. Not sure if I have everything right in my mind with the recent changes.

Currently, I am working in a PS contract, with my own Ltd company doing a fair chunk of Freelance work as well. My company is NOT on the FRS. my contract is in London, and I am claiming travel costs via my company to get to my FS client when I have to travel in to London (other times I can dial in from home). So assume this all goes ahead (I assume IPSE and others will now wake up from there long term slumber and actually start some fight/appeal action), come april I am bang, inside IR35. I assume...

1) I cant come up with some clever 'doing this project at fixed rate' solution to avoid the bum on seat inside IR35 thing?
2) I have to now pay travel personally?
3) I will be taxed at full whack (employee and employer full tax) by the agency, with no dividends possible from my company (only from the freelance work)

The boss man is offering to drop his pants and pay me so I not out of pocket, but I dont even know how I would go about working out what the balance day rate would need to be so I am not out of pocket. The other thing to do is end my contract at xmas (thats the next break point) and look for a private gig, but I assume there will be 40,000 other contractors looking to do the same.

Any tips?

[eek]

and look for a private gig, but I assume there will be 40,000 other contractors looking to do the same.

Any tips?

Only those who pay attention to what is happening will know about these changes. I would guess your competition would be 4000 max at Christmas.

The other option is to escape CL1 and go via the other schemes. I'm looking at that at the moment but its one more thing to do when I don't have much time.

[DotasScandal]

The other thing to do is end my contract at xmas (thats the next break point) and look for a private gig, but I assume there will be 40,000 other contractors looking to do the same.
Any tips?

Start looking NOW and you may still avoid the stampede.
The more forward thinking people have been making their exits more or less discreetly for months now...

[jonnyboy]

Ok - so let me ask this question.... lets say I quit this PS contract, and went 100% freelance. Then I wrote to PS organisation A (who I have never worked for before, so no agency contract), and they need a software widget developed, and I go fixed price... "here is quote 6726 for development of a widget, which costs £6,000" - with no agency, fixed cost, no bum on seat, does this skip all this IR35 whoo-har?

[missinggreenfields]

The boss man is offering to drop his pants and pay me so I not out of pocket, but I dont even know how I would go about working out what the balance day rate would need to be so I am not out of pocket. The other thing to do is end my contract at xmas (thats the next break point) and look for a private gig, but I assume there will be 40,000 other contractors looking to do the same.

Any tips?

1) Do the sums and whack the rate up - I'd add about 45% to the day rate
2) Leave