Public sector contracting

[malvolio]

It's more than that Mal, based on the mail I got.

Yes seniors not acting in a specific project role are the main target:


board members and senior officials with significant financial responsibility should be on the organisation’s payroll, unless there are exceptional circumstances – in which case the Accounting Officer should approve the arrangements and such exceptions should exist for no longer than six months

But also, and it's not clear if this is a separate clause or tied to the one above:

engagements of more than six months in duration, for more than a daily rate of £220, should include contractual provisions that allow the department to seek assurance regarding the income tax and NICS obligations of the contractor and to terminate the contract if that assurance is not provided

So potentially anyone on more than £220 / day for more than 6 months is caught, regardless.

See my later post. The scope is not only unclear, it's highly variable...

[bobspud]

An update from my lot came out this afternoon to say that they have no idea what they a actually going to do about this and they are going to talk to crapita about the situation (Well predicted Bolshie and the others that were predicting doomage) However the situation is as follows:
As of this afternoon the client are basically saying that from now on they are only allowed to work with contractors over six months that are deemed low risk or that agree to pay themselves as inside IR35.

So the six month merry go round commences. Apparently the proxy servers had quite a few jobserve pages in them

[Old Greg]

An update from my lot came out this afternoon to say that they have no idea what they a actually going to do about this and they are going to talk to crapita about the situation (Well predicted Bolshie and the others that were predicting doomage) However the situation is as follows:
As of this afternoon the client are basically saying that from now on they are only allowed to work with contractors over six months that are deemed low risk or that agree to pay themselves as inside IR35.

So the six month merry go round commences. Apparently the proxy servers had quite a few jobserve pages in them

Interesting. Keep us up to date.

[centurian]

(Well predicted Bolshie and the others that were predicting doomage) However the situation is as follows:

As of this afternoon the client are basically saying that from now on they are only allowed to work with contractors over six months that are deemed low risk or that agree to pay themselves as inside IR35.

It gives me no pleasure to be correct - as it will ultimately mean a glut of contractors hitting the market pushing down rates even further.

But this was always going to be the most likely outcome. There was a glimmer of hope when the guidance released was so piss poor with more holes than a sponge, but I don't think many public sector outfits have the stomach to sidestep the underlying intention of these guidances given the current tax avoidance witchunt going on.

[Old Greg]

If it means 6 month contracts with no extensions then that will suit me well enough - not sure about the clients. Just hope clients done respond with 7 month contracts.

[malvolio]

An update from my lot came out this afternoon to say that they have no idea what they a actually going to do about this and they are going to talk to crapita about the situation (Well predicted Bolshie and the others that were predicting doomage) However the situation is as follows:
As of this afternoon the client are basically saying that from now on they are only allowed to work with contractors over six months that are deemed low risk or that agree to pay themselves as inside IR35.

So the six month merry go round commences. Apparently the proxy servers had quite a few jobserve pages in them

Can I again ask that if anyone gets any correspondence on this issue that you get a (redacted if necessary) copy to [email protected]. They need the ammunition desparately

[Old Greg]

Can I again ask that if anyone gets any correspondence on this issue that you get a (redacted if necessary) copy to [email protected]. They need the ammunition desparately

Will do and will keep an ear open around the NHS sector. Am meeting with client next week in part to discuss project resource requirements next year.

Not sure how I could help but PM me if I can.

[malvolio]

Will do and will keep an ear open around the NHS sector. Am meeting with client next week in part to discuss project resource requirements next year.

Not sure how I could help but PM me if I can.

Thanks. Basically the more info PCG can get over what's being done (or even proposed) across the various sectors, the better they can challenge the whole thing as unworkable. Personally I think we need to demonstrate the potential for damage to PS services by alienating the contract workforce. Its not an easy one though, there is a lot of support for the basic position.

[Old Greg]

Thanks. Basically the more info PCG can get over what's being done (or even proposed) across the various sectors, the better they can challenge the whole thing as unworkable. Personally I think we need to demonstrate the potential for damage to PS services by alienating the contract workforce. Its not an easy one though, there is a lot of support for the basic position.

I think a key argument is the impact this will have on continuity within projects if this creates a 6 monthly merry-go-round, and the economics suggests that it will.

It made sense to me to prevent office holders from being outside IR35. The next thing presumably will be legislation to define PSCs and try to make all contracts > 6 months outside IR35.

[BA to the Stars]

I think a key argument is the impact this will have on continuity within projects if this creates a 6 monthly merry-go-round, and the economics suggests that it will.

It made sense to me to prevent office holders from being outside IR35. The next thing presumably will be legislation to define PSCs and try to make all contracts > 6 months outside IR35.

This wil be a massive own goal - contractors will only stay for 6 months and how many public sector projects deliver within this timescale. The turnover of contract staff with the necessary skills to deliver the project will only serve to prolong the project and therefore costs wiping out the increased tax take.

Very poorly thought out and a knee jerk reaction to pacify the press due to some senior civil servents abusing the system when they were clearly IR35 caught.

Good luck to Mal & PCG and hopefully it can be pointed out to the powers that be what a foolish move this is.