Results of the public sector consultation is up

[northernladuk]

I had been trawling through the threads and hadnt seen that answered, hence why i asked? Maybe it has - i just didnt see it. Wood for the trees and all that...

Also, your intimation is that i dont understand the situation, so maybe you could give me some pointers as to what you think i dont understand relative to my situation outlined?

Well there are a couple of links to documents that explain to whom it will apply with examples of types of work supplied. One of them is very clearly us.

There are lots of discussions about the frameworks we are supplied through such as CL1, Gloud etc and broad discussions about which frameworks will be hit.

Tons of advice on what you should be doing I.e. Getting out now (if it's not already too late)

Lots of other useful stuff being discussed as well.

[cojak]

But what if you go inside IR35 now, as opposed to 6th April? Does that remove the requirement to have your contract put through the questionnaire / details potentially sent to HMRC?

The simple answer to that is that no-one knows.

[daemon]

Well there are a couple of links to documents that explain to whom it will apply with examples of types of work supplied. One of them is very clearly us.

There are lots of discussions about the frameworks we are supplied through such as CL1, Gloud etc and broad discussions about which frameworks will be hit.

Tons of advice on what you should be doing I.e. Getting out now (if it's not already too late)

Lots of other useful stuff being discussed as well.

Spot on, cheers.

The situation i find myself in is that the particular role i do, there isnt a big amount of contracts about for it. I've been keeping an eye on the market since around Nov time, and its been fairly dry. I've one CV in now for a post, but its "quiet" to say the least.

The role i am in is a good role - could run for a long time, not terribly stressful.

So plan A is - get out before 6th April and into a private sector role again.

Plan B is go in to IR35 and run with the current role until such times as a private sector role comes up. The theory being - half a cake is better than no cake at all?

Bailing entirely and being "on the bench" isnt a particularly viable or palatable option for me.

So what i was asking is - if i flip over to being inside IR35 in advance of 6th April - say Feb time - does that prevent the review by the agency of the contract, and thus in any way reduce the risk of a follow up by HMRC? ie, from what i can read, the "test" is applied to any contractor operating through a limited company and in a public sector contract, so if you werent operating through a limited company by being on payroll / umbrella before then, could that lessen the risk?

Presumably come 6th April, HMRC are going to see a load of people "suddenly" being deemed inside IR35, so surely those people at that point must be candidates for an investigation?

[daemon]

The simple answer to that is that no-one knows.

Fair enough.

[eek]

The simple answer to that is that no-one knows.

The answer is that no body knows. However a group of contractors I suspected would know little tell me that its been the only water cooler topic of conversation and they have (without any reason to believe they have seen my cynicism from November onwards) come to the same conclusion I did that HMRC will be (at a minimum) retrospectively pursuing contractors who suddenly become inside IR35 in early April...

And if anyone knew what HMRC are planning the other people I was talking to would and they were not disagreeing (and they would know)...

So my advice isn't that the PS is to be avoided, but you need to change client prior to April and if you need expenses to make the contract worthwhile its not worth it....

[northernladuk]

Daemon, do you not have a 2 year rule about max length of a contingents placement at your place?

[daemon]

Daemon, do you not have a 2 year rule about max length of a contingents placement at your place?

Yes i do.

I've only been there since June 16. But i've been extended as of christmas there to June 17. Theres also a lot of work after that likely.

So my thinking is, move to within IR35 "soon", so it doesnt blip on HMRC's radar in April, keep an eye out for non public sector contracts, but if non materialise, then run with this one for the timebeing.

[northernladuk]

Your call. Bearing in mind everyone in the PS will be making a conserted effort to leave around April, to say there are going to be slim pickings in an understatement.

[bobspud]

Your call. Bearing in mind everyone in the PS will be making a conserted effort to leave around April, to say there are going to be slim pickings in an understatement.

Actually you are not thinking about it correctly. If a contractor walks out of TFL because they are trying to push everyone into a brolly then there are lots of new roles available. Its then down to you as a new supplier to pursue a suppliers rate that is attractive enough to go inside IR35 for that period.

[seeourbee]

The main concern in all of this is retrospective investigations. If they now decide I've been in ir35 for 10 years I will literally have to declare bankruptcy.