MoD

[eek]

The very same head-in-sanders will be on here in a couple of months asking why these nasty umbrella companies are taking all their money. That will pale into insignificance when Hector demands his RetroWedge™

And when that does occur (as it will) at least I can say well I did try to warn you...

As for pain I suspect the department with the worst issues regarding contractor retention was HMRC due to the more clueful contractors warning others..

[LondonManc]

And when that does occur (as it will) at least I can say well I did try to warn you...

As for pain I suspect the department with the worst issues regarding contractor retention was HMRC due to the more clueful contractors warning others..

Unless the message went out to the departments via the employee newsletter you'd be struggling.

[eek]

Unless the message went out to the departments via the employee newsletter you'd be struggling.

True but hey some people have to be the fall guys..

[LondonManc]

True but hey some people have to be the fall guys..

DotasScandal may not like it but if disguised employees are behaving like contractors in remuneration plans only, I'm inclined to agree with you that they can't really complain about what's coming.

[bobspud]

The very same head-in-sanders will be on here in a couple of months asking why these nasty umbrella companies are taking all their money. That will pale into insignificance when Hector demands his RetroWedge™

The problem is I am willing to bet that for every 10 guys with their heads in the sand in the public sector there will be an equal or higher number out there in the private sector doing equally stupid things and telling themselves that they are outside the legislation. The good (or bad) way to look at it is that come the next year or so, there will be very many fewer contractors and those left will be charging like a business rather than a small one man band.

The take away from looking at the tool is that going forwards if you are going for a contract you need to fundamentally own:

The scope of work once you have agreed the problem with your client
The way you do it
where you do it
and finally when

Other than that there are a vast number of contractors that have to turn up every day from 9 - 5 and comply with company rules and regulations that are in for a shock. Its just that the government lot learned the hard way first.

[northernladuk]

The problem is I am willing to bet that for every 10 guys with their heads in the sand in the public sector there will be an equal or higher number out there in the private sector doing equally stupid things and telling themselves that they are outside the legislation. The good (or bad) way to look at it is that come the next year or so, there will be very many fewer contractors and those left will be charging like a business rather than a small one man band.

The take away from looking at the tool is that going forwards if you are going for a contract you need to fundamentally own:

The scope of work once you have agreed the problem with your client
The way you do it
where you do it
and finally when

Other than that there are a vast number of contractors that have to turn up every day from 9 - 5 and comply with company rules and regulations that are in for a shock. Its just that the government lot learned the hard way first.

Totally agree but there will be enough articles and guidance out there to allow the to carry on tick box contracting for plenty of time to come. If they aren't aware of how to be a contractor now, all of this won't make much difference. Just one more hoop to ignore.

In fact thinking about it, it suits them better. Someone else deals with the IR35 stuff they couldn't be arsed to understand so making it worse.

[DotasScandal]

DotasScandal may not like it but if disguised employees are behaving like contractors in remuneration plans only, I'm inclined to agree with you that they can't really complain about what's coming.

DotasScandal is of the opinion that there cannot be "disguised employees" without the existence of "disguised employment rights" (like, the right not to be dismissed at the drop of a hat, or the right not to have your remuneration cut at the drop of a hat).
Simple.

[Beergander]

And todays communication delight...

Details of how Sopra Steria Recruitment will apply HMRC Tax and National Insurance rules
In summary:

· Sopra Steria Recruitment will not be seeking a higher rate from its clients if the assignment is deemed to fall ‘inside’ the new rules. The Gross Rate in the Schedule to your new Contract will be set at the same level as the rate in your current contract. However, terms will apply which will allow Sopra Steria Recruitment to pay you at an effective lower rate. This reflects the requirement that Employer’s National Insurance Contributions and Apprentice Levy be accounted for ‘at source’.

· Sopra Steria Recruitment will seek to put in place with your PSC a new contractual agreement that reflects the additional costs now payable by Sopra Steria Recruitment under the new rules. We are currently estimating that the revised rates payable will be approximately 13% less than the fees which you would earn if the Assignment were ‘Outside’ the new rules.

· Sopra Steria Recruitment will deduct PAYE and primary (i.e. employee’s) class 1 National Insurance Contributions from the PSC’s gross invoice. We are compelled to do this under the new rules. The amount of PAYE deducted will be in line with HMRC instructions from time to time and may be changed, e.g. by Notices of Coding. At the beginning of an assignment the deduction may be at an emergency rate.

· The net result of the above is that payments to your PSC will be subject to Tax and National Insurance Contributions as if you were an employee. Details of all deductions will be reported to HMRC under Real Time Information reporting so that your PSC can correspond with HMRC in all matters relating to your tax affairs at any time.

· In order to operate the new rules we will require you to agree to be covered by our ‘VAT Self Billing’ arrangement so that the correct figures can be generated for your PSC’s invoices to us. This will involve you registering for VAT if you are not already registered.

[northernladuk]

Should we we replace some of that with 'Sopra will reduce its margin and make it look like they've secured and increased rate' in to that?

[HugeWhale]

Can anyone confirm that all 300 Ltd contractors are leaving MOD's equipment procurement section at the end of the month?
I heard this from a drinking buddy so it's dodgy Intel to say the least!