Staying in the same public sector contract after April 2017

[Bluenose]

It was reported today that Network Rail have declared every worker as Outside IR35. By all account this includes Litter Pickers and Hedgrerow Cutters!

I've not seen the communication, but I am closing the book on where the HMRC tanks will be pointing April 7th if true.

I got this emailed to me about an hour ago.

"I am attaching the details for a new role with DFT//DFT Core//Rail Group (DfT RG).

DELETED TEXT

• Job Title: XXXX
• IR35 Status: IN SCOPE
• CV Submission Deadline: Friday 31st March @ 10:30 am
• The Maximum Pay Rate: £XXX UMBRELLA
• Location: XXXX
• Contract Length: XXXX
• Security Clearance Level Required: XXXX"

[philo]

Latest in my last few days is that the PSB have decided they want to sever ties with the agencies and set us up a band of contractors as direct suppliers and we invoice direct. Declared outside by PSB.

Then after a few months go back to the agencies.

No one here thinks thats strange.

Is it me or does is smack of evasion of sorts? I've got a new contract starting Monday at a new company so doesnt affect me.

[TheFaQQer]

Latest in my last few days is that the PSB have decided they want to sever ties with the agencies and set us up a band of contractors as direct suppliers and we invoice direct. Declared outside by PSB.

Then after a few months go back to the agencies.

No one here thinks thats strange.

Is it me or does is smack of evasion of sorts? I've got a new contract starting Monday at a new company so doesnt affect me.

No matter what they do, they need to make an assessment and record that. If they assess you as outside then why would you change to working through an agency who will take a cut and possibly go bust with your money?

If they make a mistake / lie on the assessment, then the fee payer is liable for their mistake / lie.

[LondonManc]

Latest in my last few days is that the PSB have decided they want to sever ties with the agencies and set us up a band of contractors as direct suppliers and we invoice direct. Declared outside by PSB.

Then after a few months go back to the agencies.

No one here thinks thats strange.

Is it me or does is smack of evasion of sorts? I've got a new contract starting Monday at a new company so doesnt affect me.

It smacks of PSB wanting to complete the project, rather than risking losing contractors to IR35. Through an agency or direct, they still have to provide a determination. That said, if they want to sever ties with agencies, then they need to consider the extra admin that they'll have to do to manage individual supplier contracts.

[philo]

It smacks of PSB wanting to complete the project, rather than risking losing contractors to IR35. Through an agency or direct, they still have to provide a determination. That said, if they want to sever ties with agencies, then they need to consider the extra admin that they'll have to do to manage individual supplier contracts.

They are going to given an outside determination.

not sure what the agencies will make of it either - sure they dont want to lose out on getting paid. Although its a small number of contractors and probably the threat of no future contracts

[LondonManc]

They are going to given an outside determination.

not sure what the agencies will make of it either - sure they dont want to lose out on getting paid. Although its a small number of contractors and probably the threat of no future contracts

If the PSB bins off the agencies, then the handcuff clauses are null and void - there is no demonstrable loss if the agency can no longer supply the contractor.

The problem arises when they want to take agencies back on at a later date. What happens then? Do some stay direct? Do they decide if the role is outside and advertise as direct only or inside via agency/umbrella route? HMRC have really messed things up here.

[northernladuk]

If the PSB bins off the agencies, then the handcuff clauses are null and void - there is no demonstrable loss if the agency can no longer supply the contractor.

The problem arises when they want to take agencies back on at a later date. What happens then? Do some stay direct? Do they decide if the role is outside and advertise as direct only or inside via agency/umbrella route? HMRC have really messed things up here.

What are the odds on one of the agencies attempting to highlight this little setup to HMRC?

[LondonManc]

What are the odds on one of the agencies attempting to highlight this little setup to HMRC?

PSB responds with blanket outside declaration and never uses agencies again. Your move Mr Stoopid Agent.

[Andy Hallett]

This Stoopid Agent would review the contract and send a bill for the appropriate transfer fee on the 6th April.

[meeko]

Hi everyone, I'm after some advice...

I've been working for public sector in a contract I deemed as "outside IR35" and intended to work up until 31st March and receive payment for that week on 5th April. This contract was then going to be terminated since the client deemed it "inside IR35".

Unfortunately the agency failed to make the payment and so it will be made after 6th April and so PAYE and NIC should have been deducted at source by the fee payer - i.e. my public sector client - but it hasn't.

Does anyone know what will happen now?

Will I be asked to pay the PAYE and employees NIC retrospectively?
Will I be subject to investiation given I've worked previously outside IR35 and have received payment after the 6th with an "inside IR35" decision for the same contract?

I'm trying to get the agency to hold payment until this can be clarified.