Staying in the same public sector contract after April 2017

[SueEllen]

So this thread has a lot of:
"leave before youre doomed!"
"If you don't leave before April 2017 youre doomed and certain to get an IR35 investigation"
"I left months ago only tulip contractors are still there"

But not enough of:
"If you are still in the PS this is what you should do..>"

Can we look to collate a straightforward, simple understanding of how a contractor can should look to operate if still in PS ?

Things like?

Get a new Contract.
Use a brolly.
issues with same role and new inside contract

would be good to see some positive steps a contractor can take instead of " I got out months ago and you are all doomed"

be nice to end up with some sort of steps to tackle the issue (apart from just leave)

The issue is we can't tell you the steps to take as HMRC haven't produced a working version of their tool and any more information.

So all you are hearing at the moment is guessing and unofficial information.

If you are stuck in the PS the current thoughts are to hand in your notice and seek a contract in the private sector even if you have to travel/relocate in the week. However this time don't act like a bum on seat and get your contract checked out properly.

If you can't do that another thought is it would still be worth resigning and taking a different role in the PS using an umbrella. That way if HMRC do start coming after contractors after April your tax investigation insurer can simply point out the roles are not the same.

[teapot418]

So this thread has a lot of:
"leave before youre doomed!"
"If you don't leave before April 2017 youre doomed and certain to get an IR35 investigation"
"I left months ago only tulip contractors are still there"

But not enough of:
"If you are still in the PS this is what you should do..>"

Can we look to collate a straightforward, simple understanding of how a contractor can should look to operate if still in PS ?

Things like?

Get a new Contract.
Use a brolly.
issues with same role and new inside contract

would be good to see some positive steps a contractor can take instead of " I got out months ago and you are all doomed"

be nice to end up with some sort of steps to tackle the issue (apart from just leave)

1) If it is at all possible, quit the public sector.
2) If that is not possible, and you have been in the same contract for long enough that your tax liability would be high, get a new contract with a different client.
3) If you are in the same contract, you are very vulnerable. Make sure you have tax investigation insurance. Read up on IR35, and do everything you can to collect evidence that you are legitimately in business on your own account. If you can get your client to sign a confirmation of working practices letter, do so.
4) Do number 3 anyway, even if you change contracts
5) Consider leaving little in the way of reserves in yourCo (i.e. take out the money). YourCo is liable for your IR35 tax bill, not you (unless you have been shown to act negligently). If yourCo has no money, there isn't a lot that HMRC can do.
6) Consider closing yourCo, and moving to a brolly. If yourCo is struck off, then, again, there are no funds with which to pay the tax bill.
7) Next time the opportunity comes about, register as a supplier on the digital marketplace.

[psychocandy]

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..

I did wonder that. Agency arent going to because thats they're margin being eroded of course (or removed completely)

[Semtex]

The thing is that it depends - we don't know enough to sensibly provide advice bar the fact that I personally (knowing some who are leaving with no work to go to) believe you need to put a distance between your current contract and where ever you are come April... But that depends on how long you've been there. Been there a month, the potential tax bill were HMRC to be awkward is nowt, been there 5 years the tax bill will be hideous...

And personally I wouldn't want to use an umbrella as that makes you an employee - however if you put a lot in a pension an umbrella is a good idea because they can direct it towards the pension before deducting employers NI...

If a contractor left In Dec 16 or March 17 what is the difference? HMRC wont have any additional information on the contractor ?

No Payments in April

[eek]

If a contractor left In Dec 16 or March 17 what is the difference? HMRC wont have any additional information on the contractor ?

No Payments in April

if you leave in March 2017 what happens if you are on 1 month payment terms (or 1 week payment terms if you leave on March 31st) - that's why the people I've spoken to are aiming to be out by the end of February..

And to be out by the end of February may mean serving notice now or next week....

[Semtex]

if you leave in March 2017 what happens if you are on 1 month payment terms (or 1 week payment terms if you leave on March 31st) - that's why the people I've spoken to are aiming to be out by the end of February..

And to be out by the end of February may mean serving notice now or next week....

ok the point I am making is as long as no payments go into april from hmrc's perspective it is irrelevant if you left last year or feb/march.

its all about giving accurate information so people can make their decisions.

So Point 1 clarified - Payments post april 7th will be flagged.

[Semtex]

The issue is we can't tell you the steps to take as HMRC haven't produced a working version of their tool and any more information.

So all you are hearing at the moment is guessing and unofficial information.

If you are stuck in the PS the current thoughts are to hand in your notice and seek a contract in the private sector even if you have to travel/relocate in the week. However this time don't act like a bum on seat and get your contract checked out properly.

If you can't do that another thought is it would still be worth resigning and taking a different role in the PS using an umbrella. That way if HMRC do start coming after contractors after April your tax investigation insurer can simply point out the roles are not the same.

This was one of my other questions.

Different role different contract, could even be different PS employer

[eek]

This was one of my other questions.

Different role different contract, could even be different PS employer

Different agency would be my advice which probably means different PS employer...

[Fred Bloggs]

Different agency would be my advice which probably means different PS employer...

Why worry? Nothing has changed in that respect, IR35 still has to be assessed on a contract by contract basis.

[psychocandy]

if you leave in March 2017 what happens if you are on 1 month payment terms (or 1 week payment terms if you leave on March 31st) - that's why the people I've spoken to are aiming to be out by the end of February..

And to be out by the end of February may mean serving notice now or next week....

Fortunately, my current extension runs to the end of Feb which is ideal.

I've flagged up to new client manager but he just had a blank look on his face. Didn't take it too seriously. In fact, spent most of time trying to convince me to go perm.

All I've had from the agency is an email saying we'll let you know when we decide. I've made it clear to them also that no extension unless something is sorted.