Public sector IR35 consultation launched

[MrMarkyMark]

Speaking from experience, there is no renegotiation to be had. As contract reviews are no longer acceptable, there is no way to prove conclusively that you are outside IR35 to their satisfaction. No rate rises are being considered either, it really is a take it or leave it situation. I think the threat of fines for non-compliance is driving the intransigent position.

With the alternative being the umbrella company route or joining the payroll, pretty much every contractor is going to be leaving. I've already gone back to a private sector gig.

Good for you bud

[youngguy]

This is where it gets fun.... Go and read example 3 on page 14



They can't employ contractors via the consultancies... Only permie staff can be realistically used....

I read that example and envisaged something like :
Now: contractor 500pd. Consultant 100pd
Future: contractor subs to consultancy and gets £600, consultancy collects extra tax and then charges out at £1000...or more)

Contractor gets more to offset their extra tax
Consultancy get monopoly of resources

[northernladuk]

I read that example and envisaged something like :
Now: contractor 500pd. Consultant 100pd
Future: contractor subs to consultancy and gets £600, consultancy collects extra tax and then charges out at £1000...or more)

Contractor gets more to offset their extra tax
Consultancy get monopoly of resources

Do you work in the PS at the moment?

[westtester]

What does that mean? Does that mean that a QDOS review could place you outside IR35 but hard cheese, you're still inside as far as they're concerned?

Yes. Well to be specific, 'independent' contract reviews are not considered valid. So the money I shelled out for a public sector QDos review was wasted. I think a review from HMRC themselves would be considered valid but I don't know anyone who's ever tried that.

[westtester]

This is where it gets fun.... Go and read example 3 on page 14



They can't employ contractors via the consultancies... Only permie staff can be realistically used....

The consultancy route was considered as an option as my last site. They were basically asked to take the IR35 risk on behalf of the PS client. The answer was a resounding 'no thanks' and the meeting was over pretty quickly.

[youngguy]

Do you work in the PS at the moment?

Until recently I did. Before I left there were convo's from some consultancies looking at the feasibility of either fixed term/perm or subbing in relation to contractors . This was just after the initial consultation paper was published.

[northernladuk]

Until recently I did. Before I left there were convo's from some consultancies looking at the feasibility of either fixed term/perm or subbing in relation to contractors . This was just after the initial consultation paper was published.

Fixed term is the standard way of getting perms in now so it's not really in relation to contractors as such.

[missinggreenfields]

This is where it gets fun.... Go and read example 3 on page 14

They can't employ contractors via the consultancies... Only permie staff can be realistically used....

Read it carefully - the public sector client can use the big four and pay more. The big four then takes people on as (no-longer) disguised permies. They could even offer a decent enough rate increase to cover that if they wanted to. Contractor gets the increase to cover the tax bill, big 4 gets the profit, public sector gets the project delivered (at a higher cost).

Trebles all round.

[youngguy]

Fixed term is the standard way of getting perms in now so it's not really in relation to contractors as such.

Shows how long I've been in contracting!

[youngguy]

Read it carefully - the public sector client can use the big four and pay more. The big four then takes people on as (no-longer) disguised permies. They could even offer a decent enough rate increase to cover that if they wanted to. Contractor gets the increase to cover the tax bill, big 4 gets the profit, public sector gets the project delivered (at a higher cost).

Trebles all round.

This is what I've been (badly) alluding to.