Staying in the same public sector contract after April 2017

[jamesbrown]

I assume the one from the agency to the contractor but how does that work with paying 'net'?

I think you know what assumption is the mother of. I suspect it's the earliest payment in the chain, but we'll see. For anyone taking preemptive action, it's probably safer to assume that there's little or no time remaining.

Oh, and yes, this will come as a surprise to many. It wasn't well telegraphed in the documentation from 5 December, but it was nevertheless clearly stated.

[Andy Hallett]

To be clear. It is all payments made after April 6th by the 'Payer'. In most cases this will be the agency.

When the Public Sector Body pays is immaterial.

[LondonManc]

To be clear. It is all payments made after April 6th by the 'Payer'. In most cases this will be the agency.

When the Public Sector Body pays is immaterial.

Logic dictates that it is in agency interests to get money paid through asap round that time (especially for those finishing end of March) to have as few exposed contracts as possible (to save on the admin work that would no doubt come your way otherwise).

How many agencies do you think have given consideration to this?

[SlipTheJab]

It's not complicated nor unclear - if you look at the examples, chances are 95% (but in your case 99.999995%) certain that you will be inside come April...

At least there's room for manoeuvre

[Andy Hallett]

Logic dictates that it is in agency interests to get money paid through asap round that time (especially for those finishing end of March) to have as few exposed contracts as possible (to save on the admin work that would no doubt come your way otherwise).

How many agencies do you think have given consideration to this?

That is what we will probably do.

We are writing to all Public Sector clients later this month to ask for status determination on each of our contractors.

I must be honest, many in my industry seem pretty ignorant or overly relaxed about it!

[LondonManc]

That is what we will probably do.

We are writing to all Public Sector clients later this month to ask for status determination on each of our contractors.

I must be honest, many in my industry seem pretty ignorant or overly relaxed about it!

I think it's the same for contractors as agents. Thing is, it's probably the ones who aren't aware who should probably be inside anyway on the whole.

[b r]

To be clear. It is all payments made after April 6th by the 'Payer'. In most cases this will be the agency.

My 'assumption too'.

Looks like last timesheet is in February to not get caught.

[LondonManc]

To be clear. It is all payments made after April 6th by the 'Payer'. In most cases this will be the agency.

My 'assumption too'.

Looks like last timesheet is in February to not get caught.

Depending on your billing cycle.

[jamesbrown]

To be clear. It is all payments made after April 6th by the 'Payer'. In most cases this will be the agency.

When the Public Sector Body pays is immaterial.

It's certainly implied, in the guidance notes, but I haven't seen it stated, definitively, which payment is the withholdable payment. For example (my emphasis):

Where a public authority, agency, or third party, “the fee payer” makes a payment to a worker’s intermediary on or after 6 April 2017, it decides if the rules apply, and then deducts tax and primary NICs from the payment it makes, and pays employer NICs and is included for calculating the Apprenticeship Levy. The VAT exclusive amounts must be accounted for through Real Time Information (RTI), in in the same way as for an employee. The change does not affect employment rights available to the worker.

Do you have anything more than this?

[Andy Hallett]

It's certainly implied, in the guidance notes, but I haven't seen it stated, definitively, which payment is the withholdable payment. For example (my emphasis):



Do you have anything more than this?

Nope. It is worded this way because in the case of direct contractors, the Public Sector body would be the 'payer'.

In reality an agency will generally pay before the client anyway.