May be no opt-out for Ltd Company contractors in new Conduct Regs

[malvolio]

The trouble is that there is no clear distinction to say what is a "genuine in-business Ltd Co" and what is a temporary worker who chooses to incorporate as a LTD company....

And...? That applies to IR35 and AWR as well, and we seem to manage.

The real target here are those who don't choose to incorporate: you'd be surprised how many hotel chambermaids are company directors, for example. And social workers, come to that...

[Wanderer]

The idea is that genuine in-business Ltd Co contractors are not even in the scope of the revised regs: same logic as the current AWR. You can't opt out because you can't be in.

The trouble is that there is no clear distinction to say what is a "genuine in-business Ltd Co" and what is a temporary worker who chooses to incorporate as a LTD company....

[Sidekick]

Your REC Update - Conduct Regulations #2 - YouTube

REC have been running a consultation for a couple of months - the video covers limited company contractors at 35:00 mins in.

[malvolio]

The idea is that genuine in-business Ltd Co contractors are not even in the scope of the revised regs: same logic as the current AWR. You can't opt out because you can't be in.

And if we get that, it's a win for PCG and the rest of us, since the agencies will have to rethink some (well a lot, actually) of their current FUD and HMG is a step closer to treating us as genuine independent companies.

Equally, of course, we will have to be sure to look at business issues like payment terms as well as IR35 - but we do that anyway, don't we..

[Wanderer]

Does this mean all the work and flag waving by PCG to get opt out has gone by the wayside?

Well, it looks like the regulations will be pretty much abolished so in a way it's a win for the PCG. The regulations were pretty toothless anyway because of the way the agencies openly flouted them without sanction.

Although the PCG lobbied for the opt out for the right reasons, it turns out that the agency regulations didn't do any harm to contracting as they feared and the regulations make no difference to IR35 either so the opt out is of little value to contractors. Also, a good number of PCG members choose not to opt out because they would be much better off any way.

The only party who has benefited from the opt out has been the agencies who have abused it by illegally forcing contractors to opt out. Worse still, the government has no interest in enforcing the regulations and allowed agencies to ride roughshod.

Be interesting to see how they respond. Glad to see my membership money has been spent well.

They are supposed to represent their members so if you don't agree with what they are doing then tell them. I don't think it will make a difference though because many of the senior members are strongly opposed to the agency regulations.

[cojak]

Does this mean all the work and flag waving by PCG to get opt out has gone by the wayside?

https://www.pcg.org.uk/agency-regulations



Be interesting to see how they respond. Glad to see my membership money has been spent well.

Yep, looks like it.

[northernladuk]

• Provide a clear definition of who is covered by the regulations. This is especially important if there is no longer an opt-out for limited company contractors.

Does this mean all the work and flag waving by PCG to get opt out has gone by the wayside?

https://www.pcg.org.uk/agency-regulations

PCG spent two years campaigning for an opt out clause to allow limited company contractors, who are often highly paid and highly skilled, to opt out of being covered by the regulations whilst preventing vulnerable workers from being forced to do so.

Be interesting to see how they respond. Glad to see my membership money has been spent well.

[cojak]

Neither will the PCG.

'IF the opt-put is removed...'

(for those who can't be arsed reading the link - someone is considering removal, not the REC. They just want the terms clarifying if it happens...)

[BolshieBastard]

Did anyone know that this was being consideredThe Recruitment & Employment Confederation - REC responds to the Conduct Regulations consultation

Oh dear. Rullion wont like that!

[LisaContractorUmbrella]

Did anyone know that this was being consideredThe Recruitment & Employment Confederation - REC responds to the Conduct Regulations consultation