Results of the public sector consultation is up

[BlueSharp]

While there is a general assumption that these rules will hit the private sector we ain't there yet...

Point taken. I can't see them rolling back the changes but I can see them rolling out something very similar.

[Lance]

Point taken. I can't see them rolling back the changes but I can see them rolling out something very similar.

even if they do roll them out to the private sector, it will only make a difference if the clients choose to make their contractors inside. If they want SDC over a contractor then they'll do it as inside. And in that matter it might have the effect of making IR35 enforceable as desired.

But if they don't want SDC, then why would they volunteer to pay NICS?
I can see it making a difference in the private sector but only to permitractors who are skating on thin ice anyway.

[seeourbee]

Junior permie at my Public sector contract on circa 40k has been kicking up a fuss for the last few months wanting to go contract as he got wind of how much the contractors around him were getting.

He finally got his way today and came in this morning letting everyone know.

That - and EXACTLY that - kind of moronic behaviour is what caused this all in the first place. Idiots like that have jeopardised the Ltd Co. model and trashed our reputation in the process. Out of interest what body was it ? They should be reported to HMRC immediately as an example of how abusers have helped usher in unthought-through legislation. That is utterly deplorable. Both his manager and Procurement should be reprimanded for flagrant abuse of public funds.

[LondonManc]

even if they do roll them out to the private sector, it will only make a difference if the clients choose to make their contractors inside. If they want SDC over a contractor then they'll do it as inside. And in that matter it might have the effect of making IR35 enforceable as desired.

But if they don't want SDC, then why would they volunteer to pay NICS?
I can see it making a difference in the private sector but only to permitractors who are skating on thin ice anyway.

Flip that round and you're probably closer to the truth in the private sector.

There are tons of contractors in the private sector partly because of the ability to avoid business NICs. Private sector clients will therefore be guided by agencies and corporate lawyers about how to keep their contractors outside. There may be a token offering for lower rate contractors, but they'll keep the majority outside.

[sal]

Point taken. I can't see them rolling back the changes but I can see them rolling out something very similar.

Whether they can force whatever they want down the PS bodies throat, it will be next to impossible to enforce this in the private sector, as is. they might be able to dictate some rules for where Agencies are involved in the supply chain, but there is now way to enforce conditions on business 2 business relations.

[seeourbee]

Of course there is, look at the CIS arrangement

[BlueSharp]

Whether they can force whatever they want down the PS bodies throat, it will be next to impossible to enforce this in the private sector, as is. they might be able to dictate some rules for where Agencies are involved in the supply chain, but there is now way to enforce conditions on business 2 business relations.

HMRC take a dim view on blatant tax evasion especially NI payments. If the rules say the gig is inside and the agency/psc omit or miss report that fact the penalties are quite harsh.

[Lance]

Flip that round and you're probably closer to the truth in the private sector.

There are tons of contractors in the private sector partly because of the ability to avoid business NICs. Private sector clients will therefore be guided by agencies and corporate lawyers about how to keep their contractors outside. There may be a token offering for lower rate contractors, but they'll keep the majority outside.

on that basis the sooner they push to private sector the better. Gets rid of the grey area and I can stop paying for insurance.

[sal]

Of course there is, look at the CIS arrangement

I'm looking at them - they cover narrow area of a single business sector and is mostly designed to ensure that construction workers from all over the world pay taxes before they bailout of the UK. There are plenty of loopholes in it.

[seeourbee]

Yes but it's not Public Sector. Unfortunately it's as easy to implement as a rise in Corporation Tax