Public sector contracting

[7specialgems]

Pimp said he had lots of interest in the job at the rate quoted plus he's never heard of this IR35 and the public sector (oh aye!) clampdown.

He has now!

[Darksider]

Since new year, I've had nothing but recruiters and agencies offering me NHS work. Looks like a lot of contractors might have gotten out before Christmas

[BolshieBastard]

Had a return investigated? You may never be able to take a public sector contract again!

Companies guilty of tax avoidance to be banned from major Government contracts - Telegraph

The rules will require all firms and individuals bidding for contracts to declare whether their tax returns have been rejected because of involvement in a tax avoidance scheme.

And firms will also have to sign a clause in contracts allowing departments to terminate the agreement if they are later found to have breached tax compliance obligations.

Announcing the plans in a written statement to Parliament, Chief Secretary to the Treasury Danny Alexander described the changes - due to come into effect on April 1 - as "another significant tool (which) will provide a framework to enable Government departments to say no to firms bidding for Government contracts where they have been involved in failed tax avoidance".

Under the new regime, suppliers bidding for contracts will be required to inform Government departments if any tax return has recently been found to be incorrect as a result of an HM Revenue and Customs challenge under anti-avoidance and anti-abuse rules or due to involvement in a failed avoidance scheme.

Successful bidders will be contractually obliged to tell departments if they are found in breach of tax obligations after winning a contract.

[LisaContractorUmbrella]

Had a return investigated? You may never be able to take a public sector contract again!

Companies guilty of tax avoidance to be banned from major Government contracts - Telegraph

The rules will require all firms and individuals bidding for contracts to declare whether their tax returns have been rejected because of involvement in a tax avoidance scheme.

And firms will also have to sign a clause in contracts allowing departments to terminate the agreement if they are later found to have breached tax compliance obligations.

Announcing the plans in a written statement to Parliament, Chief Secretary to the Treasury Danny Alexander described the changes - due to come into effect on April 1 - as "another significant tool (which) will provide a framework to enable Government departments to say no to firms bidding for Government contracts where they have been involved in failed tax avoidance".

Under the new regime, suppliers bidding for contracts will be required to inform Government departments if any tax return has recently been found to be incorrect as a result of an HM Revenue and Customs challenge under anti-avoidance and anti-abuse rules or due to involvement in a failed avoidance scheme.

Successful bidders will be contractually obliged to tell departments if they are found in breach of tax obligations after winning a contract.

I wonder if fiddling expenses is deemed to be 'tax avoidance'

[bracken]

Up for renewal soon...are departments accepting the professional reviews?

So...in about 6 weeks or so, me and about 50 other contractors in the department will be up for renewal and many of us will get a capita contract with the new wording for the first time.

I'm thinking of getting a qdos type review...have any of my fellow public sector contractors on here through capita managed to get their department to confirm in writing that they accept the qdos (or other professional review) as sufficient evidence that the contract operates outside of IR35 and that the public sector off payroll rules therefore don't apply? I want to get certainty of the position ahead of the renewal and if the departments are confirming everything's in order now rather than waiting for a 'random inspection' then a professional review sounds like money well spent...
Cheers
B

[malvolio]

The best advice is on the PCG site and still stands. Most departments, apart from Student Loans, who started the whole sorry debacle off, seem to be willing to accept external IR35 assessments but it is an on-going discussion..

[bracken]

The best advice is on the PCG site and still stands. Most departments, apart from Student Loans, who started the whole sorry debacle off, seem to be willing to accept external IR35 assessments but it is an on-going discussion..

Thanks

Mal (and others) - any experience of Cabinet Office's stance on this specifically?

[malvolio]

Thanks

Mal (and others) - any experience of Cabinet Office's stance on this specifically?

It's not the Cabinet Office, it's a mix of BIS and the Treasury. And last I heard we weren't getting any coherent answers. PCG are still pressing the question directly and through the IR35 Forum and issuing FOIs, so keep an eye on their website.

[Kate Cottrell]

Cabinet Office

It's not the Cabinet Office, it's a mix of BIS and the Treasury. And last I heard we weren't getting any coherent answers. PCG are still pressing the question directly and through the IR35 Forum and issuing FOIs, so keep an eye on their website.

The Cabinet Office is the main body that oversees all of this and they issued the guidance to all the other departments. The problem is that it is for each department to decide how to implement the guidance. BIS is a large body with about 40 agencies and they appear to have taken the stance of "inside IR35" as the default position. All departments are due to report back in the next few weeks so we need to watch carefully the governments response (if any) to the statistics they have gathered.
Kate Cottrell

[bracken]

The Cabinet Office is the main body that oversees all of this and they issued the guidance to all the other departments.

Kate - Thats my understanding too and given that I'm in part of the Cabinet Office, I'm expecting them to take a fairly robust approach to the paperwork for their own contractors

All departments are due to report back in the next few weeks so we need to watch carefully the governments response (if any) to the statistics they have gathered.
Kate Cottrell

I've not heard this one, is this something they've published?

I've decided to go down the route of get the renewal paperwork through, get it reviewed and before renewing, seek confirmation from my department that they accept the contract review as evidence that the new rules do not apply to me. If they confirm, fine, if they don't or wont confirm, I'll look for other opportunities as I dont want a ticking time-bomb over me where they could request paperwork in 6 months, decide that I'm caught by the new requirements, pass my details to the nice people at HMRC and then me having to undergo some sort of HMRC investigation. TBH, I prefer an easier life...

B