Public sector contracting

[Taita]

But it is also your Ltd's tax affairs. The Ltd states that it will put all income via NI / PAYE.

I expect that if I were to be offered renewal it would be on these terms. How are they distinguishing via a consultancy, that seeks to make a profit out of the consultant being put in, and my consultancy that seeks to do the same? It is a pain.

May be I don't understand properly but my interpretation of this is that the effect off this initiative will fall mainly on contractors with direct contracts. Those supplied through agencies/consultancies will probably be largely unaffected because the agency/consultancy will simply declare (as now) that its employees are accounted for as prescribed by law and that its contracting COMPANIES are contractually required to comply with prevailing legal statutes at all times.

If the contractor is running his/her company contracts legally (in or out of IR35) and gives a contractual undertaking on this point, that is about as far as it is practical for any PS buyer to take it. They have not got the resources to investigate deeper without hiring more contractors for THAT purpose.

[Old Greg]

May be I don't understand properly but my interpretation of this is that the effect off this initiative will fall mainly on contractors with direct contracts. Those supplied through agencies/consultancies will probably be largely unaffected because the agency/consultancy will simply declare (as now) that its employees are accounted for as prescribed by law and that its contracting COMPANIES are contractually required to comply with prevailing legal statutes at all times.

If the contractor is running his/her company contracts legally (in or out of IR35) and gives a contractual undertaking on this point, that is about as far as it is practical for any PS buyer to take it. They have not got the resources to investigate deeper without hiring more contractors for THAT purpose.

But the OP's email came from an agency.

[Taita]

But the OP's email came from an agency.

Would not be the first time an agency has panicked and dug out a club hammer to shell a peanut.

[BolshieBastard]

I love the way contractors go on about this not affecting them. I think some people are in for a rude awakening.

[centurian]

Those supplied through agencies/consultancies will probably be largely unaffected because the agency/consultancy will simply declare (as now) that its employees are accounted for as prescribed by law and that its contracting COMPANIES are contractually required to comply with prevailing legal statutes at all times.

Consultancy companies yes, but then the individuals probably are on PAYE.

Agencies - I would be gobsmacked if an agency is prepared to affirm the tax status of the contractors.

[Taita]

Consultancy companies yes, but then the individuals probably are on PAYE.

Agencies - I would be gobsmacked if an agency is prepared to affirm the tax status of the contractors.

Does not need to and it cannot perform regular status checks. It is sufficient to contractually require the contracting company to comply with relevant prevailing law. This actually happens in most of the contracts come my way, in some form or other and is not always clearly visible but it is there.

[Old Greg]

Consultancy companies yes, but then the individuals probably are on PAYE.

Agencies - I would be gobsmacked if an agency is prepared to affirm the tax status of the contractors.

My Ltd is a consultancy. I am on PAYE. The company makes a profit from that work. Maybe PSCs are the factor.

[malvolio]

Come on, it's perfectly simple. you work for the PS in a senior role and not on a project, all your income is subject to PAYE/NICs, and the client wants to be able to verify that. They are disregarding rules on Shadow Directors and requiring you to act illegally as a director, but they don't care. It's not even putting you inside IR35, since you don't get hte 5% discount. Little details like how you work, and weasly words about "I already pay all the taxes due" won't work. End of.

[BolshieBastard]

Come on, it's perfectly simple. you work for the PS in a senior role and not on a project, all your income is subject to PAYE/NICs, and the client wants to be able to verify that. They are disregarding rules on Shadow Directors and requiring you to act illegally as a director, but they don't care. It's not even putting you inside IR35, since you don't get hte 5% discount. Little details like how you work, and weasly words about "I already pay all the taxes due" won't work. End of.

Mal, in the land of the blind, the one eyed man is king. People wont listen and will continue to say 'it wont affect me' until it actually happens to them.

[Old Greg]

Come on, it's perfectly simple. you work for the PS in a senior role and not on a project, all your income is subject to PAYE/NICs, and the client wants to be able to verify that. They are disregarding rules on Shadow Directors and requiring you to act illegally as a director, but they don't care. It's not even putting you inside IR35, since you don't get hte 5% discount. Little details like how you work, and weasly words about "I already pay all the taxes due" won't work. End of.

You say 'not on a project' meaning > 6 months? In their eyes of course.