Public sector IR35 consultation launched

[malvolio]

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

Yeah, all well and good - but why would a consultancy pay us a significant increase in fees of around 20% to offset IR35 overheads? Plenty of mugs out there.

What will happen is the PS will still be using contractors but not only not knowing that
they are, but they are getting the bad ones, and paying roughly double the price for them.

[youngguy]

Yeah, all well and good - but why would a consultancy pay us a significant increase in fees of around 20% to offset IR35 overheads? Plenty of mugs out there.

What will happen is the PS will still be using contractors but not only not knowing that
they are, but they are getting the bad ones, and paying roughly double the price for them.

True. There are plenty of young grads who will gladly take the consultancy grains of rice. The Q will be about continuity and whether the consultancies see the need for some more experience which may only exist in the (former) contracting market once they have used all their own middle managers .

I don't much care about the PS but I am interested in how this pans out as I do believe it will be the beginning for all contractors.

Part of me believes that contractors will find a way /loophole to minimise this. Wishful thinking perhaps !

[teapot418]

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

I believe they are using MOD as a pilot scheme, it will be interesting to see how it goes

I'm not sure it's 'them'.

https://www.gov.uk/government/news/s...ctor-published

MoD got fined for not properly implementing the current rules. I wonder if this is their way of ensuring they are compliant with current legislation?

[IPSE]

I'm not sure it's 'them'.

https://www.gov.uk/government/news/s...ctor-published

MoD got fined for not properly implementing the current rules. I wonder if this is their way of ensuring they are compliant with current legislation?

Yes, I'm sure it is. The laws of unintended consequence of the Alexander Review

[youngguy]

Yes, I'm sure it is. The laws of unintended consequence of the Alexander Review

I'm really not trying to give you a hard time IPSE, but given the apparent decision of the Gov which has been taken pre consultation and the comment that the tool isn't going to be ready anytime soon,is there nothing you'd like to say or do before Aug?

I've seen nothing on the IPSE forums or new feeds on this subject for quite some time

[eek]

Yes, I'm sure it is. The laws of unintended consequence of the Alexander Review

I don't think HMRC will regard it as unintended - the fear factor is perfect for them - as it will discourage any agency from taking any risk when making the decision.

As such I can see why the website isn't being rushed. Few decisions would get that far....

[DaveB]

Looks like it's all over bar the shouting.

Government waves through IR35 changes from April 2017 :: Contractor UK

Treasury minutes recording agreement to these contractor-centric timeframes reveal that the public sector IR35 proposal will become law.

So while it may still be open to consultation, George Osborne's IR35 proposal is now a case of 'when' not 'if.'

“After April 2017, the new tax rules announced at Budget 2016 will apply,” state the Treasury minutes, referring to the ex-chancellor's IR35 proposal. “The Treasury will consider whether changes to [departmental] guidelines [on IR35 in the public sector] are necessary.”

[MrMarkyMark]

So another victory for IPSE then
Talk about not having your eyes on the ball.

T&S victory must seem worthless now.

[malvolio]

So another victory for IPSE then
Talk about not having your eyes on the ball.

T&S victory must seem worthless now.

That's IPSE and every other serious body with even a vague interest, such as ICAEW, the IR35 Forum, and many other trade bodies and consultancies. If the people raising the consultation don't listen to the answers, just what do you expect anyone to do about it? Apart from us whinging form the sidelines of course...

[missinggreenfields]

That's IPSE and every other serious body with even a vague interest, such as ICAEW, the IR35 Forum, and many other trade bodies and consultancies. If the people raising the consultation don't listen to the answers, just what do you expect anyone to do about it? Apart from us whinging form the sidelines of course...

Including the CBI and REC. Nobody but HMRC have come out in favour of this.

That doesn't mean anyone should stop complaining / lobbying / responding to the consultation though - if everyone gives up before the deadline, then it will become a certainty for public sector and then private sector ("nobody complained last time, so it must be OK")