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Staying in the same public sector contract after April 2017
I can see a lot more private sector work going different ways:
Direct engagement by smaller firms of contractor ltd cos as suppliers, where we'll have to suck up longer payment terms but be outside IR35 because we're operating under full B2B terms in the way that they'd engage Otis for their lifts, Chubb for their secure storage, etc.
Direct engagement by larger firms of contractor ltd cos as associates, resorting to agencies as finders with a finder fee and trickle payment system. The agencies will lose out as long extensions and repeat business will not be included in the finder fees.
Under both models, the big losers are the recruitment agencies.
The greatest trick the devil ever pulled was convincing the world that he didn't exist
I can see a lot more private sector work going different ways:
Direct engagement by smaller firms of contractor ltd cos as suppliers, where we'll have to suck up longer payment terms but be outside IR35 because we're operating under full B2B terms in the way that they'd engage Otis for their lifts, Chubb for their secure storage, etc.
Direct engagement by larger firms of contractor ltd cos as associates, resorting to agencies as finders with a finder fee and trickle payment system. The agencies will lose out as long extensions and repeat business will not be included in the finder fees.
Under both models, the big losers are the recruitment agencies.
I've spoken to some agents who concentrate on the German market over the years. The second model is the one they use and they seem to make sufficient income from it so I wouldn't worry about them.
In addition some clients who engage freelancers and contractors directly aren't so bothered if you aren't incorporated. So these models could lead to newer freelancers actually paying more tax.
"You’re just a bad memory who doesn’t know when to go away" JR
I've spoken to some agents who concentrate on the German market over the years. The second model is the one they use and they seem to make sufficient income from it so I wouldn't worry about them.
In addition some clients who engage freelancers and contractors directly aren't so bothered if you aren't incorporated. So these models could lead to newer freelancers actually paying more tax.
My apologies if you thought I ever was.
The greatest trick the devil ever pulled was convincing the world that he didn't exist
If there's an online tool available it will be used in both sectors. What the hell's the point of it otherwise?
For private sector it isn't compulsory but it is there for a reason.
Why would it be used in the Private Sector, unless the tax burden / liability has changed due to law, like in the PS?
Nothing has changed there, it is still for the contractor to decide whether they are outside and be liable for any tax consequences, if found not to be
Why would it be used in the Private Sector, unless the tax burden / liability has changed due to law, like in the PS?
Nothing has changed there, it is still for the contractor to decide whether they are outside and be liable for any tax consequences, if found not to be
It's important to remember that this tool is for the public sector because HMG can force it to ignore employment law and use whatever criteria it deems fit to use to determine IR35 status...
Getting the private sector to use the tool as its probably going to be designed isn't likely to work because a manager in the private sector can't be fired by a senior civil servant....
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