Dust settles - what happened?

[swamp]

PSB here declared all contractors outside after using the ESS tool. The agencies have been a different matter: many contractor's agencies were OK but some contractors had to switch or had considerable agro convincing their agency to agree to PSB outside IR35 determination.

I'm still slightly worried my agency will go back on their word and pay my next invoice net. But they know in that case that will be the last invoice they ever receive from me and possibly the last time they work with the PSB too.

Overall I'm cautiously positive. When these rules are applied to the private sector (next April IMO), it may not actually be so bad.

[Andy Hallett]

PSB here declared all contractors outside after using the ESS tool. The agencies have been a different matter: many contractor's agencies were OK but some contractors had to switch or had considerable agro convincing their agency to agree to PSB outside IR35 determination.

I'm still slightly worried my agency will go back on their word and pay my next invoice net. But they know in that case that will be the last invoice they ever receive from me and possibly the last time they work with the PSB too.

Overall I'm cautiously positive. When these rules are applied to the private sector (next April IMO), it may not actually be so bad.

And them incur 14.3% NI and Apprentice Levy? No chance!

[AV101]

And them incur 14.3% NI and Apprentice Levy? No chance!

What has it got to do with the agency if the PSB declares the contract outside? Am I missing something?

[psychocandy]

As I've said on other threads, I left my PS client at end of Feb. They were fannying about with the IR35 decisions and didnt really get it about working in march being covered (because it would be paid in April). Having worked there for over 2 years I couldnt risk them declaring inside and then having retrospective.

So then a role came up that the client had decided was inside IR35. Not ideal but, of course, no risk of retrospective action because its new.

The client has upped the rate so it pretty much covers the extra tax. Had no choice because contractors left. Umbrella is a bit of a PITA but it is what is. Local gig etc.

Slightly annoying that they could cut this increase in half, declare the role outside IR35 and both parties would be much better off.

As I've said before, its now cost a public sector organisation a shedload of extra cash to get contractors in. Which will go back in extra tax. Can't see how anyone is gaining at all?

Only gains in extra tax are going to be those PS organisations that, for whatever reason, can't increase the rate. What'll happen then is that contractors will leave/not be interested and the service will suffer. Not well thought through.....

[oliverson]

As I've said on other threads, I left my PS client at end of Feb. They were fannying about with the IR35 decisions and didnt really get it about working in march being covered (because it would be paid in April). Having worked there for over 2 years I couldnt risk them declaring inside and then having retrospective.

So then a role came up that the client had decided was inside IR35. Not ideal but, of course, no risk of retrospective action because its new.

The client has upped the rate so it pretty much covers the extra tax. Had no choice because contractors left. Umbrella is a bit of a PITA but it is what is. Local gig etc.

Slightly annoying that they could cut this increase in half, declare the role outside IR35 and both parties would be much better off.

As I've said before, its now cost a public sector organisation a shedload of extra cash to get contractors in. Which will go back in extra tax. Can't see how anyone is gaining at all?

Only gains in extra tax are going to be those PS organisations that, for whatever reason, can't increase the rate. What'll happen then is that contractors will leave/not be interested and the service will suffer. Not well thought through.....

You never know, it might push rates in the private sector up!

[yorkshirespud]

I predict a huge surge in people visiting this site later this week, as they receive their first month's payment within IR35, at 50% of last month's total ..

[Andy Hallett]

I had a call on Saturday from an owner of an agency asking me what all this IR35 business was.

[yorkshirespud]

I had a call on Saturday from an owner of an agency asking me what all this IR35 business was.

How did the rest of the conversation go?

[TheFaQQer]

How did the rest of the conversation go?

He couldn't provide two references.

[cojak]

I had a call on Saturday from an owner of an agency asking me what all this IR35 business was.