Staying in the same public sector contract after April 2017

[difficulttimes]

The important thing is that the Public Sector will need to learn this the hard way. That means vacancies will appear and may or may not be filled.

Then (assuming people don't get desperate and take the new lowly paid roles) the Public sector will identify ways of bringing suitable resources back - even if that is through a consultancy charging significant premiums...

I was reading the press article on the news page here and a contractor said at TfL that they expect the contractor to absord the 14% employers NI.. ouch that is a hit..

[eek]

I was reading the press article on the news page here and a contractor said at TfL that they expect the contractor to absord the 14% employers NI.. ouch that is a hit..

But that's always been the case. It's one reason why limited companies (and dodgy tax schemes) have been so popular

[Hotsauce56]

Not sure if the recent posts relate specifically to this - Transport for London bans limited companies ahead of IR35 change :: Contractor UK
If so, I'll step back, if not, read with interest.

This is getting really interesting now. I can't speak for the I.T staff but the majority of PM's, engineers, and so called infrastructure 'experts' at TfL will struggle to achieve their current day rates in the private sector or even elsewhere. They will have a look sure, but the majority will just end up with umbrellas or on perm <50k. Opportunities for small consultancies to grab the decent staff that do leave.

[eek]

This is getting really interesting now. I can't speak for the I.T staff but the majority of PM's, engineers, and so called infrastructure 'experts' at TfL will struggle to achieve their current day rates in the private sector or even elsewhere. They will have a look sure, but the majority will just end up with umbrellas or on perm <50k. Opportunities for small consultancies to grab the decent staff that do leave.

And I guess that's the point. People have been able to abuse the tax system and then help their mates abuse the system and that isn't going to be the case going forward...

[MrMarkyMark]

This is getting really interesting now. I can't speak for the I.T staff but the majority of PM's, engineers, and so called infrastructure 'experts' at TfL will struggle to achieve their current day rates in the private sector or even elsewhere. They will have a look sure, but the majority will just end up with umbrellas or on perm <50k. Opportunities for small consultancies to grab the decent staff that do leave.

Hence my comment, below:-

Always remember my time at TFL going through one of the big 5.


I had to tell the contract Enterprise Administrator of my product what buttons to click to perform a server install, as I was not allowed to do it myself and he didn't have a scoobys.

There were also "contractors" that had been there 15 years+, in fact I'm unsure whether they had contracted anywhere else.

Happy days

[jamesbrown]

And I guess that's the point. People have been able to abuse the tax system and then help their mates abuse the system and that isn't going to be the case going forward...

I guess this is going to play out in stages:

• Very short-term: chaos, projects go vastly over time and critical projects go vastly over-budget
• Short-term: HMG panics and workarounds are established for a subset of cases. Also, some BoS contractors that left the PS are forced back because they can't find work outside
• Medium-term: HMG full panic mode, as anticipated by HMRC. HMRC show how everything has "worked" (=false employment). Rules extended to the private sector, chaos is extended beyond the PS, but more contractors reconsider the PS when the can't find permie roles

It's very difficult to predict how the supply/demand situation will play out, but the private sector doesn't have the spare capacity for all those PS folks, and the permie market doesn't have the spare capacity for all those contractors looking for permie roles when it's extended to the private sector. Interesting set of competing factors and timing w/r to rate inflation/compression, depending on your skills, I suspect.

[cojak]

...and the permie market doesn't have the spare capacity for all those contractors looking for permie roles when it's extended to the private sector.

This was my thought exactly when I considered my options 18 months ago. I was able to research properly and pick the best option for me at my leisure.

Many people have already left it too late.

[eek]

the great unknown in James' post is point 3 (if applied its going to be fun) but I think that is 50-50 at the moment.

HMRC will like to do it, whether HMG could ignore the screams from elsewhere in the way they have done in the public sector is far harder to guess.

A better question will be how HMRC play with the results of the Taylor review into employment...

[eek]

This was my thought exactly when I considered my options 18 months ago. I was able to research properly and pick the best option for me at my leisure.

Many people have already left it too late.

That was mine until I remembered how and why I hated being permie, hence looking at the consultancy option instead.

[seeourbee]

Just overheard two civil servants talking about their colleagues at HMRC's approach to tax - the bottom line was that it was punitive based and not equality based. Very much aimed at reducing the choices available to a non-PAYE tax payer and increasing the 80% statistic of PAYE payers. As I've stated many times, this is all about newspaper vote-winning headlines.

Was difficult to restrain myself from not barging into their conversation.