Public sector IR35 consultation launched

[DotasScandal]

20,000 PS contractors sounds a lot to be looking for other opportunities if the article proves anywhere near right. Private sector rates about to drop for non specialist roles that continue to be in demand.

"He who has an ear, let him hear". He who panics first panics best.

An avalance of unintended consequences is coming.

[youngguy]

Nice article but it doesn't cover the probable fact that the consultancies will get an exemption notice from the new rules

Is this your view or based on specific information?

I ask as the way I read the consultation doc is ANY PSC has to pay tax etc, and the closest body collects it. So a contractor working/subbing to a consultancy would pay and the consultancy would act as the immediate agency and collect the tax.

The only way I can see that not being the case is if the contractor took a perm role with said consultancy.

[Hobosapien]

Is this your view or based on specific information?

I ask as the way I read the consultation doc is ANY PSC has to pay tax etc, and the closest body collects it. So a contractor working/subbing to a consultancy would pay and the consultancy would act as the immediate agency and collect the tax.

The only way I can see that not being the case is if the contractor took a perm role with said consultancy.

Uneducated guess based on the hunch consultancies have more lobbying power with those making the rules, so if they can't fill the void through cheap imported labour they may want concession on the rules to fill their pockets while bringing in the necessary resource through other avenues.

[MrMarkyMark]

Uneducated guess based on the hunch consultancies have more lobbying power with those making the rules, so if they can't fill the void through cheap imported labour they may want concession on the rules to fill their pockets while bringing in the necessary resource through other avenues.

You only have to look back and see that PWC pretty much came up with IR35...

[eek]

You only have to look back and see that PWC pretty much came up with IR35...

Consultancies would prefer skilled contractors as staff rather than as contractors. I wouldn't expect many consultancies not to play ball with this scheme and to try and force decent contractors into permanent employment.

[youngguy]

Consultancies would prefer skilled contractors as staff rather than as contractors. I wouldn't expect many consultancies not to play ball with this scheme and to try and force decent contractors into permanent employment.

Grads from uni....sure. Not sure they will be as successful getting experienced contractors on their payroll. Half of us left that world because we saw the rates they charged compared to our salaries and were sick of the sales targets.

[eek]

Grads from uni....sure. Not sure they will be as successful getting experienced contractors on their payroll. Half of us left that world because we saw the rates they charged compared to our salaries and were sick of the sales targets.

But when you do public sector work and it's that or nothing?

[DotasScandal]

But when you do public sector work and it's that or nothing?

Then embrace change.
It's never "that or nothing".

[youngguy]

But when you do public sector work and it's that or nothing?

True. I would *hope* contractors stand fast....but if it's the difference between earning £0 on the bench and earning their old rate - 30%, then you can see what options they will choose.

I think quality of candidate could well go down, as those that have other options in the private sector will move.

Of course if you believe (like I do) that this is the first step to taxing ALL contractors like permies then it may only buy us a few yrs at most.

[malvolio]

True. I would *hope* contractors stand fast....but if it's the difference between earning £0 on the bench and earning their old rate - 30%, then you can see what options they will choose.

I think quality of candidate could well go down, as those that have other options in the private sector will move.

Of course if you believe (like I do) that this is the first step to taxing ALL contractors like permies then it may only buy us a few yrs at most.

Actually its the first step in taxing contractors who can't clearly demonstrate they are operating as independent businesses that will be caught. Another reason for concentrating on your terms of engagement. And, incidentally, for breaking the agency stranglehold on freelance recruitment.