Results of the public sector consultation is up

[Coalman]

If those minions are employees they are already on PAYE so IR35 doesn't apply and they have had full NI and tax deducted.

What if those people are contractors themselves? We have a lot of those at client co.

[eek]

What if those people are contractors themselves? We have a lot of those at client co.

Then (I think) it will depend on what the managers at the end (public sector) client decide...

[northernladuk]

Then (I think) it will depend on what the managers at the end (public sector) client decide...

I can't believe it will be left to managers to decide this type of thing in the PS though. I'd expect a policy to dictate. They aren't very good at individuals taking risks, well not my client anyway.

[eek]

I can't believe it will be left to managers to decide this type of thing in the PS though. I'd expect a policy to dictate. They aren't very good at individuals taking risks, well not my client anyway.

True but I wanted to point out that it may not be the consultancies deciding whether people are inside or not, it will be the public sector client at the top of the chain who will be deciding..

[Coalman]

Agreed. Meant to add, client co not PS, just looking forward. There have been a few of us here talking about this. We know the shared ownership thing is an issue, but considering setting up a consultancy of our own.

[SueEllen]

What if those people are contractors themselves? We have a lot of those at client co.

That's the point I was making earlier.

Many consultancies that the PS use, use contractors as they do not have permanent staff with the skills and cannot find permies to take on the roles especially the ones in the middle of no where.

So yes the bigger consultancies will get more government contracts but they are going to have a difficult time staffing them.

[eek]

That's the point I was making earlier.

Many consultancies that the PS use, use contractors as they do not have permanent staff with the skills and cannot find permies to take on the roles especially the ones in the middle of no where.

So yes the bigger consultancies will get more government contracts but they are going to have a difficult time staffing them for their staff will be subject to the same rules as individual contractors.

FTFY simply to make it explicit as to why consultancies will have problems just replacing contractors...

The entire point of this change is to ensure that the way the public sector works changes. NI will be paid for everyone who works as if an employee, only if you are providing unsupervised resource with explicitly defined deliveries will you escape these changes.

I guess the latter may well be watered down over time but you aren't going to have many managers trying to pull tricks to solve things in the early days...

[seeourbee]

HS2 has a problem then, 65% of their workforce are contractors

[youngguy]

Agreed. Meant to add, client co not PS, just looking forward. There have been a few of us here talking about this. We know the shared ownership thing is an issue, but considering setting up a consultancy of our own.

What is a consultancy from a tax perspective though?

Surely a couple of contractors lumped together is still a PSC, or if not you'd be paying tax as employees (which is the same thing moving forward in the PS)?

Consultancies just have perm staff or sub out to contractors (who will pay tax like employees ) or am I missing something ?

[eek]

HS2 has a problem then, 65% of their workforce are contractors

Yep see https://www.gov.uk/government/public...ng-rules-apply but all places the engineers can go to will be in the same boat so its possible a solution may be found after a while or they are going to have to accept it.