Staying in the same public sector contract after April 2017

[mickael28]

Thanks for the info. I'll keep more updated on this from now on... I still cannot believe that this has been approved, ie, contracting conditions are not that great if you cannot organise your financial affairs in a convenient way to cover for periods where you're out of job, or other eventualities. I guess they're just trying that some people move onto permanent positions? but not sure if clients will want to get more permanent employees at that point... We'll see how this ends up

[SueEllen]

Thanks for the info. I'll keep more updated on this from now on... I still cannot believe that this has been approved, ie, contracting conditions are not that great if you cannot organise your financial affairs in a convenient way to cover for periods where you're out of job, or other eventualities. I guess they're just trying that some people move onto permanent positions? but not sure if clients will want to get more permanent employees at that point... We'll see how this ends up

No because they don't want the head count on the books due to the pension liabilities.

[mickael28]

Ah really? so the purpose is basically just to get more tax? or are they doing this change for another specific reason?

[cojak]

Ah really? so the purpose is basically just to get more tax? or are they doing this change for another specific reason?

Nope, just to get more tax.

[eek]

Nope, just to get more tax.

+1. The last examples focussed on Employers NI so I that is one area the new proposals are focused on (making sure they are paid by the party who employs the contractor so they are not avoided).

Between that and their desire to use SDC as the determining factor everything was going swimmingly for HMRC until the Uber ruling appeared. I do hope my letter regarding the consequences of that and the equality act 2010 has reached the appropriate red boxes by now...

[missinggreenfields]

Nope, just to get more tax.

The fact that more tax minus tribunal costs minus difference in engaging a big 4 consultancy minus cost of project delays is a huge negative number is lost on HMRC, sadly.

[SlipTheJab]

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...

I'm seeing a lot of PS roles mandating inside ir35 now, so no grace period, they're got you by the short and curlies straight away.

[eek]

I'm seeing a lot of PS roles mandating inside ir35 now, so no grace period, they're got you by the short and curlies straight away.

That's fine. It's a market I'm just not interested in (more because I don't want to be at some ones beck and call rather than the money side of things).

[Cirrus]

Reality Check: Contractors still have Mortgages after May 2017

The fact that more tax minus tribunal costs minus difference in engaging a big 4 consultancy minus cost of project delays is a huge negative number is lost on HMRC, sadly.

Who said they need to engage a Big Four employee? They can just get a contractor as before, only now the contractor pays more tax.

[DaveB]

Who said they need to engage a Big Four employee? They can just get a contractor as before, only now the contractor puts their day rate up to cover the extra tax.

FTFY.