Public sector contracting

[DaveB]

Quick update on proceedings.

Capita have officially announced that the CL1 contract as written is dead. Current Cipher contracts will now run on for 3 months, but may extend out to September.

PCG are now in the mix after CCS were pointed in their direction and made contact. Hopefully this means that the final contracts will be somewhat more sensible than the originals.

For anyone currently in contracting in Government, Local or Central, go and read the story on the PCG website. It has a lot more detail on whats behind CL1 and how it might affect contractors working through other agencies. Short answer is you will contract with an agency (probably), they will contract with Capita who contract with Government. Don't ask.

[misterpingu]

Hello - I'm new - first post in fact and just taking my first steps into contracting.....

I've been talking to a contact in the HMRC IT dept about the possibility of a contract and they mentioned CL1 - which I'd never heard of, but a Google search and a trawl through this thread has certainly given me food for thought! I've not seen the contract yet but it very much is coming via the CL1 route - the thread seems to indicate that CL1 as was is dead? Does anyone know if the contract terms have been re-written?

[shookshiver]

FYI

Can someone read between the lines here - I work for a public body and would like to know how this will effect me/us

Is there anything i should be prepared for
.........

XXXX RECRUITMENT UPDATE ON HMRC ONSHORE EMPLOYMENT INTERMEDIARIES LEGISLATION

This email has been issued to all XXXX Recruitment Contractors on current assignments


Dear XXXXX Recruitment Contractor

In our continuing efforts to keep you informed of changes in legislation which affect recruitment activities in the UK, the following information describes the latest developments regarding the new HMRC legislation that was announced in the March Budget surrounding the introduction of measures to deal with 'false self-employment' of freelance workers through intermediaries.

XXXX Recruitment has worked in consultation with APSCo (the Association of Professional Staffing Companies) to review the impacts of the legislation. Additionally we have received initial guidance (since full HMRC guidance is still awaited) from both APSCo and HMRC on the steps we should be taking to comply with the Employment Intermediaries Legislation.

In view of the new HMRC legislation which is to be introduced as of 6th April 2014 XXXXX Recruitment, in order to protect its position, will be required to request and record evidence of the contract of employment of the worker(s) from the employing company, coupled with a signed declaration that the employing company is responsible for payroll and statutory deductions, for the worker(s). As we already operate electronic contracts, our intention is to capture this additional information through our Contractors' Portal.

Once this e-contract workflow is designed our revised processes will be communicated to you along with clear instructions on what you need to do and by when. Our aim is to ensure that compliance is achieved without introducing complex administrative steps for you, which is why we believe modifying the e-portal to request contracts of employment and a signed declaration of corporate responsibility for management of statutory deductions is the best route to take.

Once we have further guidance that clarifies the full HMRC requirement, we will be in contact to explain the next steps.

[malvolio]

Got to the PCG website and have a read of their views on CL One.

As far as I know there is no new legislation (this is an agency speaking, you don't expect them to understand anything, do you?) HMG via the Cabinet Office have appointed Capita to oversee all contractor recruitment and to sit between hirers and agencies. To do this Capita have come up with a God-awful contract that demands a load of unacceptable information and contains clauses designed to put you inside IR35 regardless. This has been challenged by PCG and they and the Cabinet Office are now working on a revised version that actually gets a little closer to reality. Meanwhile, AIUI, all such new contracts are on hold; you use your original until the new one is released in a month or three.

New starters have a different problem, in that the are only getting offered some variation of the CL One contract. Most take one look and walk away, rapidly.

[shookshiver]

Got to the PCG website and have a read of their views on CL One.

As far as I know there is no new legislation (this is an agency speaking, you don't expect them to understand anything, do you?) HMG via the Cabinet Office have appointed Capita to oversee all contractor recruitment and to sit between hirers and agencies. To do this Capita have come up with a God-awful contract that demands a load of unacceptable information and contains clauses designed to put you inside IR35 regardless. This has been challenged by PCG and they and the Cabinet Office are now working on a revised version that actually gets a little closer to reality. Meanwhile, AIUI, all such new contracts are on hold; you use your original until the new one is released in a month or three.

New starters have a different problem, in that the are only getting offered some variation of the CL One contract. Most take one look and walk away, rapidly.

Thanks for that - ill def look into this

[pjuk]

Harder and Harder....

As someone who had their own Limited Company long before IR35 and found the sudden constraints in 1999 baffling, I've always viewed these type of changes as fascinating when stripped back to their basic function.

Allow me to introduce myself: I'm Peej, Director of my own company Peej Ltd for the past 26 years, I sub-contract my knowledge based services to clients, usually - but not always - using an Agency who are an intermediary but do not oversee my work nor - effectively - know what I do.

I am employed by my own service company and not an employee of my client or the Agency, I can and often will, do other work while undergoing the contract with my client. I do not check this either with the Agency or the Client as it is my decision as Director as to what I do. The work my client requires me to do will often need me to work in their offices and on their equipment but I not part of their company nor part of their culture ( I do not attend their Awaydays or company functions).

I'm currently in the middle of a 9 month local Govt contract and if they ask me for ...assurance regarding the income tax and NICS obligations of the contractor I will simply point them to my Accountant and the continuance of my company for the last 25+ years. I cannot see why this wouldn't be sufficient but if it's not, then there is nothing I can do for you and if you no longer want me to carry out the contracted work then I will do so elsewhere.

[TheFaQQer]

Allow me to introduce myself: I'm Peej, Director of my own company Peej Ltd for the past 26 years

Peej Ltd
Inc. Date: 20 Dec 2001
19 Nov 2002 Final Dissolution

[DaveB]

Update on the CL1 situation, current renewals are going through under the CIPHER Framework at least until September now. This has been confirmed by Capita.

As abo ve, it doesn't help those with new contracts, but ffor those of us going through extension/renewals it at least means we can keep working.

[speling bee]

While we're here: still no word of this in NHS Trusts or NHS Foundation Trusts.

[malvolio]

While we're here: still no word of this in NHS Trusts or NHS Foundation Trusts.

They are public sector but they are not Civil Service; perhaps that is why?