Public sector IR35 consultation launched

[DaveB]

Well my position from April next year, assuming it all goes ahead as expected, is that My Co. rates will be quoted *net* of PAYE, plus Expenses. Not expecting to get much PS work, but if they get desperate enough they might pay it.

[youngguy]

Well my position from April next year, assuming it all goes ahead as expected, is that My Co. rates will be quoted *net* of PAYE, plus Expenses. Not expecting to get much PS work, but if they get desperate enough they might pay it.

That's an interesting approach 🙂

"My rate is £500pd NET, you work it out - as the Gov legislation says you are responsible for calculating and collecting taxes - and let me know!"

[SussexSeagull]

IR35 dispute prompts mass walkout of IT contractors from MoD agency

So they were doing support stuff? In fairness that does sound a little too close to IR35 for my liking anyway.

They also all need to find roles in the private sector. Good luck with that at the moment.

[DaveB]

So they were doing support stuff? In fairness that does sound a little too close to IR35 for my liking anyway.

They also all need to find roles in the private sector. Good luck with that at the moment.

The way I read it was that 30 out of 32 contractors walked, and the two left are dealing with support issues simply to keep the lights on as there is now no resource for anything else.

[SussexSeagull]

The way I read it was that 30 out of 32 contractors walked, and the two left are dealing with support issues simply to keep the lights on as there is now no resource for anything else.

Great example of a place not being able to function without contractors!

Problem is with the public sector is they don't pay their people enough or develop and train them then the moan when they have to fork out on contractors (in fairness that could be said of a lot of the private sector as well).

All going to end badly.

[jamesbrown]

Well my position from April next year, assuming it all goes ahead as expected, is that My Co. rates will be quoted *net* of PAYE, plus Expenses. Not expecting to get much PS work, but if they get desperate enough they might pay it.

Obviously, the PS client doesn't know your final PAYE liability, which is a critical flaw in the whole proposal and will lead to major disparities between the RTI payments and the final (correct) liability declared in your SATR. For the same reason, it would be difficult to approach this as you suggest. I think the only sensible approach, if you want to charge more, is to ask for more. In any case, I'd expect that's the only way the client/agent would engage in a conversation (even if it ended with, "no way").

[SueEllen]

Great example of a place not being able to function without contractors!

Problem is with the public sector is they don't pay their people enough or develop and train them then the moan when they have to fork out on contractors (in fairness that could be said of a lot of the private sector as well).

All going to end badly.

Shame the other two don't walk. They must live in walking distance from the site not to.

Oh and in the private sector they presume they can just get them from abroad.

[Pherlopolus]

Shame the other two don't walk. They must live in walking distance from the site not to.

Oh and in the private sector they presume they can just get them from abroad.

I wondered if the last 2 use an umbrella anyway...

[DaveB]

Obviously, the PS client doesn't know your final PAYE liability, which is a critical flaw in the whole proposal and will lead to major disparities between the RTI payments and the final (correct) liability declared in your SATR. For the same reason, it would be difficult to approach this as you suggest. I think the only sensible approach, if you want to charge more, is to ask for more. In any case, I'd expect that's the only way the client/agent would engage in a conversation (even if it ended with, "no way").

Not really, you just tell the "employer" your current tax standing - equivalent to a permit giving them payslips or a P45 from their last employer, and they can work it out from there. Provided you keep payslips from your co. showing what you've "earned" you just inform the next client accordingly, or not if they are not PS.

[jamesbrown]

Not really, you just tell the "employer" your current tax standing - equivalent to a permit giving them payslips or a P45 from their last employer, and they can work it out from there. Provided you keep payslips from your co. showing what you've "earned" you just inform the next client accordingly, or not if they are not PS.

That isn't nearly good enough for anything but the simplest of arrangements. The liability could be drastically wrong when engaged in a mix of private and public sector contracts during a tax year, whether in sequence or in parallel. Also, frankly, I think you'd be perceived as not being credible unless you attempted to negotiate a gross payment. In that sense, it's really no different than negotiating a permie salary.