Results of the public sector consultation is up

[seeourbee]

You can apply to receive gross under CIS

[eek]

You can apply to receive gross under CIS

This isn't CIS. I only mentioned CIS as its a similar scheme to show that half the arguments I've heard which state that HMG can't do this are invalid because they've already done this in the past.

[jamesbrown]

Draft legislation for those that are that way inclined (i.e. james.brown!)

https://www.gov.uk/government/public...view-documents

Thanks, I'll probably scan that later although, TBH, the relevant part of ITEPA has become increasingly difficult to wade through, tiny details can matter, and recent blunders at the draft stage don't inspire confidence.

In the mean time, it's translated here

Treasury Implements Amy Lame Tax - Guido Fawkes Guido Fawkes

[LondonManc]

Not quite. Under the CIS rules your company receives the money with all taxes already deducted. The company's only job is to transfer that taxed income to you as your pay.

Hence contract £110,000. income tax and NI withheld (say £45,000 I know its wrong its just an exampled). Your company receives £110,000-45,000= £65,000. As that income has already been taxed it can be paid directly to you as income.

So company profit = £0 (everything came as income), dividends possible from profits £0 (as the company hasn't made a profit),

Your company will actually make a loss due to insurance/accountancy fees.

[Hotsauce56]

Guys im a long time lurker on these forums and have watched your musings on this matter with intrigue.

Im in a PS contract which ive been undertaking since Dec 2015. Ive been looking for an out since I got wind of this stuff in March.

Today of all days ive been offered a private sector contract. However - they will be providing me to, you guessed it...the public sector.

As far as I can understand ill be inside. The relationship goes - public sector body > private sector tech company > agency > me (ltd).

Below is the sell I have received from the recruiter;;

Hi X,

The guy currently in the position puts in a minimum of 40 Hours per week – just as an idea of how many he puts in last week was 42 Hours.

The vacancy would sit with private sector company so therefore from an IR35 point of view you would be safe as you would be contracting to the private sector.

private sector company would then therefore be providing a consultancy service to public sector body and you wouldn’t be doing so directly for them.

The contract would lie between private sector company and yourself.

What are your thoughts on this and the rate?


What do you guys think? Do you know anyone who you think could conduct a reliable contract review at this stage? Cheers

[eek]

Your company will actually make a loss due to insurance/accountancy fees.

Yep I know that - I just didn't want to confuse sal any further.


In other news examples are now available at https://www.gov.uk/government/public...technical-note albeit they are wrong.

Looking at the Midshire CC example its just wrong - Having used the Employment Status Service, they have determined that the off-payroll rules should apply and Tim tells them that the rate is now £120,000....

Although to be blunt such questions will need to be asked well before any interviews occur...

[seeourbee]

Why do I get the feeling that the Status Service is this:

Q: Do you work ?
A: Yes
HMRC: Off payroll rules apply

[jamesbrown]

One minor detail:

"If work is completed before 6 April 2017 but payment made on or after 6 April 2017 it will be within the new legislation."

[youngguy]

So we are a business that pays tax like an employee and then we get a p45? Am I the only one baffled ?

[seeourbee]

No your not. How this is legal is beyond me. What about employee rights and benefits? Pensions ? Paid holiday ? Sick pay ?