What's changed - FAQ

[cojak]

In other news the NI regulation changes are now up at https://www.gov.uk/government/public...gulations-2017

That's not really of interest:-

Page 2 of this however https://www.gov.uk/government/upload...PDF_file_3.pdf states that otherwise the person would be treated as an employee (sorry I haven't posted a quote its a pdf image file rather than text). If anyone was going for rights via a tribunal I suspect it is employee rights you are aiming for not worker rights.

Let me do that for you...

[yorkshirespud]

It also depends on the terms of your contract. As I commented earlier today someone elsewhere had a contract that allowed tax to be deducted from payments if the agency was required to do so...

The contract was signed before Christmas, and I've rechecked it, it has no reference to withholding of tax in any situation.

As soon as any payment comes in light, I'm going straight to the court for breach of contract.

[cojak]

The contract was signed before Christmas, and I've rechecked it, it has no reference to withholding of tax in any situation.

As soon as any payment comes in light, I'm going straight to the court for breach of contract.

Well I hope you're successful with this, good luck yorkshirespud.

[b r]

The contract was signed before Christmas, and I've rechecked it, it has no reference to withholding of tax in any situation.

As soon as any payment comes in light, I'm going straight to the court for breach of contract.

Surely though the change is due to a change in the law, and this change to the law was known about when you (both) signed the contract - so can't see what you think you'll gain?

[DaveB]

The contract was signed before Christmas, and I've rechecked it, it has no reference to withholding of tax in any situation.

As soon as any payment comes in light, I'm going straight to the court for breach of contract.

Won't happen. Come April, once the client informs the agency that you are now deemed to be inside IR35, your contract will be terminated and a new one issued containing the revised payment terms. They will be entitled to do this as they are simply reflecting a change in legislation and legal obligations, and not to do so would negate the contract anyway. Your choice will be to sign it or walk away.

[eek]

Won't happen. Come April, once the client informs the agency that you are now deemed to be inside IR35, your contract will be terminated and a new one issued containing the revised payment terms. They will be entitled to do this as they are simply reflecting a change in legislation and legal obligations, and not to do so would negate the contract anyway. Your choice will be to sign it or walk away.

That's what makes early April such a problem for Agencies. To get past the rules they need to get all of March's payments done by April 5th - most agencies I've spoken to are dreading it but have an additional one off payroll run scheduled.

[yorkshirespud]

That's what makes early April such a problem for Agencies. To get past the rules they need to get all of March's payments done by April 5th - most agencies I've spoken to are dreading it but have an additional one off payroll run scheduled.

From what I've seen so far, both the PS client and Agency have their heads in the sand and hope it all goes away.

I actually feel a little sympathy for the Agencies (not too much mind) as the Agency effectively has to become the enforcer for any PS client decision. Again, what I've seen, the Agency is not set up at all to make NIC/Tax payments etc, and have not prepared at all, in their contracts or payments setup.

Bottom line, I don't think PS client or Agent will do anything proactively, including cancelling contracts, which leaves them wide open to legal action if they end up withholding payments.

[Andy Hallett]

Bottom line, I don't think many PS clients or Agents will do anything proactively, including cancelling contracts, which leaves them wide open to legal action if they end up withholding payments.

I've fixed it for you. We are very prepared.

[electronicfur]

My company is being offered a direct contract in the public sector. 99% of the work is done from my own office, and my company currently provides services for this public sector organisation via another company, a small consultancy, currently outside IR35. Have control, right of substitution, etc.

I understand the decision on whether the contract is within IR35 will now be up to the public sector organisation. Is there any way if I sign a contract now, that I can ensure the contract terms are such that it will be deemed outside of IR35, and that there is no comeback to me if it is later deemed to be inside? The organisation have an urgent need for my speciality so I may be able to dictate the terms.

I also dont want to take the contract if it has a high risk of being terminated in April because of the changes.

Advice appreciated.

[northernladuk]

I've nearly fixed it for you. We are very prepared.

You are supposed to bold the bit you've FTFY'd. You should know better!!