Staying in the same public sector contract after April 2017

[SussexSeagull]

Can't agree with the first line. They did consult. They consulted widely and everybody told them it was unworkable and a bad idea. The point is the consultation was a sham. They decided to ignore the results of the consultation and implement what they wanted. The consultation was just a tick in the box to cover themselves when all of the sh1t hits the fan.

I agree with you on the second point - the NHS has a salary cap in place which is already very low and well below the market rate. Then factor in this 20% tax hike on this already below market rate and then consider, as a contractor you'll get no benefits and could be out of work for periods of time.

I stand by the 'not thought through' bit though.

From a purely selfish point of view I hope chaos happens in the public sector and we get a firebreak towards it going to the private sector.

[BoredBloke]

I don't follow. Everyone told them it would be terrible - how does that involve covering themselves in anything but excrement?

Because they will just say they followed the procedure and cherry pick the parts that fit with their agenda.

There must be whole swathes of the public sector who have done nothing about this as I would have thought that there would be a lot more news surrounding contractors binning public sector roles.

[jamesbrown]

I stand by the 'not thought through' bit though.

From a purely selfish point of view I hope chaos happens in the public sector and we get a firebreak towards it going to the private sector.

On the contrary, in HMRC-world, any exodus from the PS is likely to be viewed as justification for equal treatment across the public and private sectors.

[LondonManc]

Because they will just say they followed the procedure and cherry pick the parts that fit with their agenda.

There must be whole swathes of the public sector who have done nothing about this as I would have thought that there would be a lot more news surrounding contractors binning public sector roles.

You expect public sector bureaucracy to be proactive? Not from the bits of it that I've seen.

[BoredBloke]

On the contrary, in HMRC-world, any exodus from the PS is likely to be viewed as justification for equal treatment across the public and private sectors.

That's my fear in this. The public sector won't be able to attract contractors due to the different way they are taxed and as such will deem it unfair that private sector contractors are paying a different rate than public sector ones and it will get forced onto the private sector. Unless this becomes a monumental tulipstorm, this will come to the private sector very soon!

[SussexSeagull]

That's my fear in this. The public sector won't be able to attract contractors due to the different way they are taxed and as such will deem it unfair that private sector contractors are paying a different rate than public sector ones and it will get forced onto the public sector. Unless this becomes a monumental tulipstorm, this will come to the private sector very soon!

The difference is if the private sector think it will hit delivery and/or leaves them open to demands for employee rights it will stop it having no downside if they put everyone into IR35.

[LondonManc]

On the contrary, in HMRC-world, any exodus from the PS is likely to be viewed as justification for equal treatment across the public and private sectors.

How so? Surely it's the equivalent of dropping your rates to such an extent that nobody will work for you?

[SueEllen]

That's my fear in this. The public sector won't be able to attract contractors due to the different way they are taxed and as such will deem it unfair that private sector contractors are paying a different rate than public sector ones and it will get forced onto the private sector. Unless this becomes a monumental tulipstorm, this will come to the private sector very soon!

Why?

All that will happen in the private sector is contracts will be written to ensure the contractor is definitely out of scope.

[BoredBloke]

Why?

All that will happen in the private sector is contracts will be written to ensure the contractor is definitely out of scope.

But that's exactly what the public sector could do! My bet is the private sector will just go down the conservative route and only offer contracts that are inside IR35. If they offer an outside IR35 contract that HMRC deems is inside, who pays for what regarding taxes that should have been paid

[SueEllen]

But that's exactly what the public sector could do! My bet is the private sector will just go down the conservative route and only offer contracts that are inside IR35. If they offer an outside IR35 contract that HMRC deems is inside, who pays for what regarding taxes that should have been paid

What has been repeated on here many times which you either don't understand or are deliberately ignoring, is that in the private sector jobs are not held on to in the same way as in the civil service.

So while the civil servant who engages contractors fears they will lose their job if they don't hire contractors in a certain way, as the private sector includes SMEs and multi-national who all have different hiring practices trying to enforce the same rules will lead to work arounds.