Staying in the same public sector contract after April 2017

[jamesbrown]

The added confusion and possible plethora of Qs comes from how Gov are attempting to implement this and do the withholding.

Their easiest way would have been to declare Gov contracts as inside at point of approval. As you said, the collection of taxes would therefore be easy and fall under everyone's current understanding.

The collection of such taxes from the end agent creates the Qs about treatment, changes to terms in contracts(eg the wording in clone contracts will have to change) and then leads to the kind of ingenuity Eek has come up with plus the 'tax me an employee, give me rights' argument.

It may turn out to be merely administrative changes , but those changes affect agents, contractors and accountants in a potentially big way

Sure, but my point was not about simplicity/complexity, but about what flows from the absence of any change in the contractual relationship.

The reason it's favourable for HMG/HMRC to address this through withholding, rather than identifying contracts as being inside and then relying on normal IR35 accounting procedure, is that they get the money upfront and don't need to chase it and prosecute evasion. Obviously, it makes sense for everyone except HMG/HMRC to have normal procedure in place.

[youngguy]

Sure, but my point was not about simplicity/complexity, but about what flows from the absence of any change in the contractual relationship.

The reason it's favourable for HMG/HMRC to address this through withholding, rather than identifying contracts as being inside and then relying on normal IR35 accounting procedure, is that they get the money upfront and don't need to chase it and prosecute evasion. Obviously, it makes sense for everyone except HMG/HMRC to have normal procedure in place.

Yep, not to mention HMRC need to force Gov depts to play ball, as the depts know the whole ir35 issue just means they struggle to get the interims they need. Depts care about delivery, not tax

[eek]

Yep, not to mention HMRC need to force Gov depts to play ball, as the depts know the whole ir35 issue just means they struggle to get the interims they need. Depts care about delivery, not tax

The senior managers of the departments don't, however, want to find themselves managing minor offices in Outer Mongolia rather than Whitehall. And there is enough other changes around the edges to ensure that that will be the consequences of trying to bypass the rules.

Outside central government it may not be so bad but anything that is part of a Government Department is going to be a no-no.

[youngguy]

The senior managers of the departments don't, however, want to find themselves managing minor offices in Outer Mongolia rather than Whitehall. And there is enough other changes around the edges to ensure that that will be the consequences of trying to bypass the rules.

Outside central government it may not be so bad but anything that is part of a Government Department is going to be a no-no.

HMRC do seem to have it all wrapped up this time.

Managers won't have much left to manage however if there is a mass exodus. Every Gov programme I worked on for nearly a decade was at least 75% interim resourced.

[missinggreenfields]

The senior managers of the departments don't, however, want to find themselves managing minor offices in Outer Mongolia rather than Whitehall.

Sir Humphrey: How would you like to be Deputy Secretary in charge of defence procurement?
Bernard: Oh, gosh
Sir Humphrey: In Sunderland or Berwick-upon-Tweed or Lossiemouth?
Bernard: Is that a place?
Sir Humphrey: Lossiemouth? What did you think it was?
Bernard: A dog food

[mickael28]

Hi guys,

Totally beginner question. I've always worked in a totally different sector in the private sector, but I was just now offered a new contract role in the public sector to which I agreed, then I noticed the title of this thread just now...

What is changing after April 2017? and would it affect every single contractor in the public sector?

[SlipTheJab]

Hi guys,

Totally beginner question. I've always worked in a totally different sector in the private sector, but I was just now offered a new contract role in the public sector to which I agreed, then I noticed the title of this thread just now...

What is changing after April 2017? and would it affect every single contractor in the public sector?

You'll be inside IR35 bang on, perm tax with none of the benefits, I refuse to consider PS contracts out of principle now.

[mickael28]

You'll be inside IR35 bang on, perm tax with none of the benefits, I refuse to consider PS contracts out of principle now.

Ah really, what a coincidence! I just told 2 other agents to cancel 2 interviews tomorrow for the private sector...

and when will that new legislation start, beginning of May 2017?

[eek]

Ah really, what a coincidence! I just told 2 other agents to cancel 2 interviews tomorrow for the private sector...

and when will that new legislation start, beginning of May 2017?

April 2017 depending on what is finally announced next Wednesday / Thursday in the Autumn Statement.
There is one month grace before a decision is made so it will be May before you see the impact...

[DotasScandal]

Ah really, what a coincidence! I just told 2 other agents to cancel 2 interviews tomorrow for the private sector...
and when will that new legislation start, beginning of May 2017?

Maybe it's not too late to un-cancel.

You'll thank us later.