Results of the public sector consultation is up

[eek]

Thanks for all your comments...

I have just been reading my policy not only am I insured against fighting ir35 I am also covered for back tax and penalties....

So... if I was to fail the test come April (that I have no control over ) providing I didn't except the result and asked my insurance to take over.... in theory it's no worse than getting an ir35 investigation now.... I would obviously just be at an impass within my current contract and would have to leave. As I don't agree with being inside....

Not quite. If you are inside in April you will be paid net.

Employers NI will be paid by your agency, employees NI and income tax will be deducted from the amount paid to your company and only the net amount paid.

Yes you could argue the point and protest but you need to

1. Win the case
2. Recover the money from the agency
3. Who in turn would need to recover the money from hmrc

So it's by no means as clear as prior to April when you hold the money to the point hmrc win the case

[newtothegame]

Not quite. If you are inside in April you will be paid net.

Employers NI will be paid by your agency, employees NI and income tax will be deducted from the amount paid to your company and only the net amount paid.

Yes you could argue the point and protest but you need to

1. Win the case
2. Recover the money from the agency
3. Who in turn would need to recover the money from hmrc

So it's by no means as clear as prior to April when you hold the money to the point hmrc win the case

I think my recruiter will force me to an umbrella... so I was thinking by moving to an umbrella I am kinda agreeing that I agree that I'm inside ir35 as I would need to setup the umbrella

[northernladuk]

I think my recruiter will force me to an umbrella... so I was thinking by moving to an umbrella I am kinda agreeing that I agree that I'm inside ir35 as I would need to setup the umbrella

Speak to Lucy at Contractor Umbrella. She's very aware of the PS changes and has been posting about it on Linkedin a lot so she'll know exactly what's going on and won't pull the wool over your eyes.

[newtothegame]

thanks

[MPwannadecentincome]

I think bodies like TfL and NHS need to be careful on sending out communication to their contractors until they fully know the situation.

and when will they fully know the situation? April the 5th is a bit late. Contractors have to make decisions soon regardless of whether anyone "fully" knows or not.

[Andy Hallett]

Results of the public sector consultation is up

Interesting comments. Ultimately the risk for the contractor on post 6th April payments is negated completely by the new rules as I understand. If the client deems you outside, it is the agency on the hook if it later turns out to be a wrong classification.

As you can imagine I am buzzing at the idea taking a tax liability based on someone else's decision..... If you think there is going to be shock in the contractor community just wait until some of my peer group wake up!

Happy to do a Q&A on specific points as have been head down preparing for this since November.

[daemon]

Interesting comments. Ultimately the risk for the contractor on post 6th April payments is negated completely by the new rules as I understand. If the client deems you outside, it is the agency on the hook if it later turns out to be a wrong classification.

As you can imagine I am buzzing at the idea taking a tax liability based on someone else's decision..... If you think there is going to be shock in the contractor community just wait until some of my peer group wake up!

Happy to do a Q&A on specific points as have been head down preparing for this since November.

I heard a view that the smaller / smallest agencies could be quite gung ho about all this because if push comes to shove and HMRC bear down on them, they'll just fold, and pop up again under a different name. Perhaps a simplistic view but an interesting one.

There is no personal liability for the agency, so your company may be liable but you individually wouldnt be.

If a contractor gets it wrong then HMRC will tear their lives apart to get what they "think" they are owed.

[northernladuk]

How many small agencies supply to PS though? It's a pain to get on the suppliers list and the few agencies I know of are on fixed margin. I am not sure this type of gossip is really that useful.

[jamesbrown]

I heard a view that the smaller / smallest agencies could be quite gung ho about all this because if push comes to shove and HMRC bear down on them, they'll just fold, and pop up again under a different name. Perhaps a simplistic view but an interesting one.

There is no personal liability for the agency, so your company may be liable but you individually wouldnt be.

If a contractor gets it wrong then HMRC will tear their lives apart to get what they "think" they are owed.

There's little opportunity for an agency to do this, since they announced that the PS client will be responsible for determining status, and payments can be tracked by RTI. Had they allowed the agency to determine status, perhaps.

[Andy Hallett]

I heard a view that the smaller / smallest agencies could be quite gung ho about all this because if push comes to shove and HMRC bear down on them, they'll just fold, and pop up again under a different name. Perhaps a simplistic view but an interesting one.

There is no personal liability for the agency, so your company may be liable but you individually wouldnt be.

If a contractor gets it wrong then HMRC will tear their lives apart to get what they "think" they are owed.

The 'payer', which in most cases is the agency will be responsible for deducting and indeed responsible in the event of mis-classification.

The contractor cannot in theory get it wrong, as they no longer decide.