Results of the public sector consultation is up

[difficulttimes]

Looking at this example https://www.gov.uk/government/upload...e-ministry.pdf can I ask WTFFFFFFFF (the amount of F's is accurate) that person is doing working via a limited company....

That was my first thought - she is getting a promotion as a contractor. Also, interesting that there is no mention in their dodgy flowchart that she is also owed backtaxes for the last 18 months! Even if this does exist WHY would this person in a million years accept the new contract. Are they dreaming? Interesting that they aren't using examples of social workers or NHS workers etc.

[eek]

If we all close our companies (I will) then HMRC loses all that VAT. Don't they care ?

The first thing to remember is that VAT is not tax its HMRC's money that we collect for it on it's behalf.

[DotasScandal]

Looking at this example https://www.gov.uk/government/upload...e-ministry.pdf can I ask WTFFFFFFFF (the amount of F's is accurate) that person is doing working via a limited company....

Those examples are so childish and existing in the realm of fantasy that I'm thinking it's some kind of running joke. You should see the ones from the APN legislation 2014.
I'm wondering if Gauke himself makes all those amateurish flow charts.

[seeourbee]

The first thing to remember is that VAT is not tax its HMRC's money that we collect for it on it's behalf.

Yes, and if my company doesn't charge it, it won't collect it, it won't get paid to HMRC . So they lose cash.

[eek]

Those examples are so childish and existing in the realm of fantasy that I'm thinking it's some kind of running joke. You should see the ones from the APN legislation 2014.
I'm wondering if Gauke himself makes all those amateurish flow charts.

You can imagine the question:-

have you got flow charts to cover all scenarios? Yep there is 8 of them.. I've covered all parts of the public sector...

[eek]

Yes, and if my company doesn't charge it, it won't collect it, it won't get paid to HMRC . So they lose cash.

VAT is also tax neutral in the case of the public sector. Council pays VAT out, councils get a grant for the amount paid out, most of it is collected back by HMRC.

Outside of banking, gambling VAT is total neutral. We bill £100k+VAT, our clients deduct that £20k in VAT payments from the amount of VAT they pay HMRC...

[youngguy]

The point is these people should be employees (even if on a temporary fixed term basis) and I suspect this is designed to ensure that is the case....

Which brings us back to the original agreement which is just employ them then!

No sign of the digital tool either so people can't really plan

[seeourbee]

VAT is also tax neutral in the case of the public sector. Council pays VAT out, councils get a grant for the amount paid out, most of it is collected back by HMRC.

Outside of banking, gambling VAT is total neutral. We bill £100k+VAT, our clients deduct that £20k in VAT payments from the amount of VAT they pay HMRC...

Yes I know, but I was thinking the private sector which is inevitably the next step.

[LondonManc]

Yes, and if my company doesn't charge it, it won't collect it, it won't get paid to HMRC . So they lose cash.

Incorrect. Given that it's all government cash, they'll want to pay you as little as possible - the more in your pocket, however they pay you, the more it costs them overall. That'll be the simple vision. This is management by spreadsheet at its most dangerous. There's no thought about the secondary and tertiary markets that lots of contractors support - shops, bars and restaurants near places of work, etc.

The risk is ultimately that they'll end up getting consultancies in and the big pot of cash will disappear elsewhere at a quicker rate than we could spend it.

[youngguy]

Looking at this example https://www.gov.uk/government/upload...e-ministry.pdf can I ask WTFFFFFFFF (the amount of F's is accurate) that person is doing working via a limited company....

If that is their idea of a company no wonder they all think we are disguised employees