Results of the public sector consultation is up

[seeourbee]

Wouldn't they still be deemed inside, just like consultancy co workers would be through a traditional consultancy?

We really don't know. Just like Brexit, the government has jumped foot first into a fire without any plan. The junior little Policy bods that come up with this crap at BIS need to thrown under a bus.

[Lance]

Bloody Hell this is scary!!

From https://www.gov.uk/government/public...-public-sector

13.However, the underlying rules that determine whether or not an individual working through their own company should be paying employment taxes still apply to the private sector. This means a worker found to be within the rules by a public sector body is likely to also be within the rules if they were to do the same job in the private sector. Therefore moving from the public sector to a similar role in the private sector will not automatically remove the obligation for an individual to pay employment taxes.

As there's no significant change to who "should be paying employment taxes" then this is a meaningless statement. It is the status quo.

[eek]

We really don't know. Just like Brexit, the government has jumped foot first into a fire without any plan. The junior little Policy bods that come up with this crap at BIS need to thrown under a bus.

Firstly this wasn't designed by junior people and has been years in the planning starting from before the Agency reporting regulations.

I remember a pub conversation between various HMRC contract techies years back where when I put the things together you could see what was happening.

This is nothing like Brexit, the desire is that people in the public sector are employed via PAYE this is designed to ensure they are. We are as I've continually argued collateral damage which the government is willing to accept.

[BoredBloke]

As there's no significant change to who "should be paying employment taxes" then this is a meaningless statement. It is the status quo.

The employment taxes now relate to your status and it clearly states if you role in the public sector was considered to be within IR35, doing a similar role in the private sector will be within it also. The employment taxes will be those due for being within IR35

As this came from the letter from HM TreasuryThe Rt Hon David Gauke MP, it's pretty clear the steer that's being given to HMRC!

[eek]

As there's no significant change to who "should be paying employment taxes" then this is a meaningless statement. It is the status quo.

+1. That is there to stop the contractor adding a consultancy or 2 to try and remain outside IR35. It's not there to expand it to the private sector, its there to ensure those in the public sector (neither the department or the contractor) can use the private sector to recruit people who would otherwise fall inside the rules.

[LondonManc]

Firstly this wasn't designed by junior people and has been years in the planning starting from before the Agency reporting regulations.

I remember a pub conversation between various HMRC contract techies years back where when I put the things together you could see what was happening.

This is nothing like Brexit, the desire is that people in the public sector are employed via PAYE this is designed to ensure they are. We are as I've continually argued collateral damage which the government is willing to accept.

What's the logic behind it? Is it some deluded belief that they'll make a net gain in revenue?

[eek]

The employment taxes now relate to your status and it clearly states if you role in the public sector was considered to be within IR35, doing a similar role in the private sector will be within it also. The employment taxes will be those due for being within IR35

As this came from the letter from HM TreasuryThe Rt Hon David Gauke MP, it's pretty clear the steer that's being given to HMRC!

See my post above. It's designed to say don't try and wiggle out of these changes - if you think there are tricks you can pull statement 13 is killing them early...

[LondonManc]

See my post above. It's designed to say don't try and wiggle out of these changes - if you think there are tricks you can pull statement 13 is killing them early...

Just to clarify, does this only apply to single director ltds?

[seeourbee]

Firstly this wasn't designed by junior people and has been years in the planning starting from before the Agency reporting regulations.

I remember a pub conversation between various HMRC contract techies years back where when I put the things together you could see what was happening.

This is nothing like Brexit, the desire is that people in the public sector are employed via PAYE this is designed to ensure they are. We are as I've continually argued collateral damage which the government is willing to accept.

Of course it was, I work with them first hand. They are the ones who formulate the plans for a broad brush government policy. How did you think it works ?

By Brexit I meant no robust plan. Firefighting is not a plan.

[Lance]

The employment taxes now relate to your status and it clearly states if you role in the public sector was considered to be within IR35, doing a similar role in the private sector will be within it also. The employment taxes will be those due for being within IR35

As this came from the letter from HM TreasuryThe Rt Hon David Gauke MP, it's pretty clear the steer that's being given to HMRC!

it is as it is now. If you're in PS now, in IR35 and you move to private sector to do exactly the same you are also still in IR35.
This new 'law' is just a government department policy change on how to handle the murky grey area that is IR35. It doesn't change IR35 just the implementation of it in PS.