What's changed - FAQ

[Agent]

don't take this the wrong way but I don't know and being that its agency related rather than contractor related I'm not that concerned.

Hopefully Andy Hallett will pick up the question and answer it.

It's all one and the same thing isn't it? What effects the agencies effects you? (assuming you'll ever work through an agency)

[BackupBoy]

Hmmm. This just in from the programme director at my current contract (MoD via consultancy via agency):

"Some of you have started to raise concerns around the proposed revision to IR35 for Public Sector contractors in April this year.

At this point we do not have firm information but I wanted to let you know that it is on our radar and we are in discussion with <agency> and <consultancy>on this matter."

I will update you further once more information is available but meanwhile, if you have any concerns, please come and talk to either myself or <programme manager>."

My current extension is up on May 19th and for most of the other contractors it's around the same time. Current extensions are all 3 or 4 months duration.

Doesn't bode well.

[eek]

Hmmm. This just in from the programme director at my current contract (MoD via consultancy via agency):

"Some of you have started to raise concerns around the proposed revision to IR35 for Public Sector contractors in April this year.

At this point we do not have firm information but I wanted to let you know that it is on our radar and we are in discussion with <agency> and <consultancy>on this matter."

I will update you further once more information is available but meanwhile, if you have any concerns, please come and talk to either myself or <programme manager>."

My current extension is up on May 19th and for most of the other contractors it's around the same time. Current extensions are all 3 or 4 months duration.

Doesn't bode well.

Who does the programme director work for?

How long have you been there for? How much would the payment be if everything was inside?

[NHS1979]

Confused

This is the most helpful thread I've found on all of this so, firstly, thank you for all your time spent giving info.

I am an NHS Manager normally working as a contractor/interim with the NHS via an agency (so my contract is with the agency, who in turn have one with the NHS). At present this works well and I move around depending on where the work is. Typical day rate would be £450 and, leaving aside the VAT, I get this into the company account, leave aside the Corporation Tax, and pay myself minimum salary and rest in dividends (with the latter also taxed after a threshold).

My NHS end-client is, as you'd expect, bemused by all this and no doubt will employ a blanket decision like TfL.

I know you are going to post more information, but for now my only question is re corporation tax. If I carry on post-March '17 with a new contract with slicker wording from the agency, my understanding is that NI and PAYE taxes are collected and I receive the net of this into the company account. This would now be regarded as 'salary' and so payable directly into my personal bank account (no more dividends or dividend taxes). But what about the corporation tax? If I am still getting this 'salary' via the ltd company, will the CT still be due too? 20% is massive.

[runandbecome]

More Confusion

More confusion

A number of us at the university I am doing I.T consultancy for are billing directly.
I noticed in the threads. HMRC may make PAYE a yearly guess like normal employees get (i.e the if you bill per month or week they work out your yearly rate)
However most of us are billing sporadically per work. for me I have a different projects I'm assigned I may put in invoices at very sporadic times maybe 6weeks then 4weeks then 7 weeks. Also we have no contract which makes life even more interesting.

So far we have heard nothing from the University I'm at.

[BackupBoy]

Who does the programme director work for?

How long have you been there for? How much would the payment be if everything was inside?

The consultancy.

Since May 2016. Initial 6 month contract extended in November for a further 6.

I'll need to work out those numbers properly but a quick and dirty umbrella company calc produces around £6k net.

It's a 400 mile round trip weekly commute and I rent a room in a shared house locally.

[SueEllen]

It's all one and the same thing isn't it? What effects the agencies effects you? (assuming you'll ever work through an agency)

Not necessarily.

[SueEllen]

More confusion

A number of us at the university I am doing I.T consultancy for are billing directly.
I noticed in the threads. HMRC may make PAYE a yearly guess like normal employees get (i.e the if you bill per month or week they work out your yearly rate)
However most of us are billing sporadically per work. for me I have a different projects I'm assigned I may put in invoices at very sporadic times maybe 6weeks then 4weeks then 7 weeks. Also we have no contract which makes life even more interesting.

So far we have heard nothing from the University I'm at.

Are you using purchase orders? So you basically bill per piece of work/milestone you have done.

[Andy Hallett]

More confusion

A number of us at the university I am doing I.T consultancy for are billing directly.
I noticed in the threads. HMRC may make PAYE a yearly guess like normal employees get (i.e the if you bill per month or week they work out your yearly rate)
However most of us are billing sporadically per work. for me I have a different projects I'm assigned I may put in invoices at very sporadic times maybe 6weeks then 4weeks then 7 weeks. Also we have no contract which makes life even more interesting.

So far we have heard nothing from the University I'm at.

The onus is on the University to declare you inside IR35. Until they do (or don't) I would hang tight.

[runandbecome]

Are you using purchase orders? So you basically bill per piece of work/milestone you have done.

Yes we do get po's my manager raises PO's for us, which grants us 6 months contracts, so unfortunately not for specific work, but we are encouraged to invoice against certain projects.
We have to put the PO number on our invoices.

Some of us are billing directly some are going through agencies.
I gather either the University will blanket everyone whether direct or not, or we may get lucky.

So weird with Universities as well, I know they are officially public but in the finer detail they are not really public and are run like normal co's.