Public sector IR35 consultation launched

[WordIsBond]

Nice to see that even those who should know things don't

As you are subject to IR35 - there won't be any expenses bar none-standard circumstances....

IR35 allows for 5% expenses, doesn't it?

[eek]

IR35 allows for 5% expenses, doesn't it?

We don't know if the new regime would....

[youngguy]

We don't know if the new regime would....

So we don't know what the tool is that may put us inside, nor the % we will be hit for tax and (possibly) expenses.

For now I hope PS contractors are all refusing to renew. HMRC won't care of course,but depts are going to have a tough few months recruiting and retaining interim staff.

I can't wait for the final model/calcs that show exactly what the hit will be (let's not forget most will pay more personal tax as they will need to draw more cash out for expenses etc).

[difficulttimes]

My concern would be if you currently have a contract and it goes over into the new tax year.. what happens when you take this online tool and you are inside IR35 (which I'm sure it will be set up to ensure that 99% are!). Do they apply retrospective tax collection for the previous months on that contract. Sounds like alll of us should make a run for it before April

[Hobosapien]

Shirley it would be for new contracts from next April.

Not sure if or how renewals of existing contracts may be affected after that date. It's possible the renewal acceptance will require a termination of the old contract arrangements and welcome to the new world with a new contract. All guess work until they decide the specifics of what kind of mess they want to pretend is workable.

Possibility of retrospective taxation would make me not want to risk being in contract in PS come next April.

[MrMarkyMark]

Shirley it would be for new contracts from next April.

Not sure if or how renewals of existing contracts may be affected after that date. It's possible the renewal acceptance will require a termination of the old contract arrangements and welcome to the new world with a new contract. All guess work until they decide the specifics of what kind of mess they want to pretend is workable.

MOD already have in place, renewal presents a new worded contract on a sign it, or get lost basis

[missinggreenfields]

Nice to see that even those who should know things don't

As you are subject to IR35 - there won't be any expenses bar none-standard circumstances....

Do you not need to pay insurance, accounting, phone, broadband, use of office etc if you are inside IR35 then?

[eek]

Do you not need to pay insurance, accounting, phone, broadband, use of office etc if you are inside IR35 then?

You are working as if on the staff of that public sector agency... How do you think HMRC see it....

[LondonManc]

You are working as if on the staff of that public sector agency... How do you think HMRC see it....

If I'm working as staff, I want sick pay, holidays, representation, any other staff perks associated with the job.

[Hobosapien]

MOD already have in place, renewal presents a new worded contract on a sign it, or get lost basis

So they're trailing it voluntarily then. If everyone presented with such a new contract just walks, that may be the right kind of feedback that will make the govermin change their minds for next April.