End of contractors at any GOV.UK project after April 2017

[Maslins]

I wouldn't, however, state that a 10% increase in rates is enough. Given that a contract inside ir35 doesn't allow expenses I would need a lot more than 10%.

If that happens it's all a bit pointless isn't it. Oversimplified eg below:
- Old situation - agreed rate is £200/day, and contractor pays £50/day in tax. Net cost to public sector = net gain to contractor = £150.
- New situation - agreed rate is £250/day, and contractor pays £100/day in tax. Net cost to public sector = net gain to contractor = £150.

But I guess some would be happy as it suggests contractors pay their "fair share" in tax despite no real change?!

[LondonManc]

The cynic in me says that they will assume it's just a renewal. And then you have the agencies who when hmos did their changes were trying to argue that the tax changes were not a material change to the contract and that the old contract was valid regardless of the new tax terms

Probably right. The shizzle could hit the fan in March when agencies try mass conversion of contracts with significant clause changes.

[youngguy]

If that happens it's all a bit pointless isn't it. Oversimplified eg below:
- Old situation - agreed rate is £200/day, and contractor pays £50/day in tax. Net cost to public sector = net gain to contractor = £150.
- New situation - agreed rate is £250/day, and contractor pays £100/day in tax. Net cost to public sector = net gain to contractor = £150.

But I guess some would be happy as it suggests contractors pay their "fair share" in tax despite no real change?!

That would be a win for Gov and a win for us!

[LondonManc]

That would be a win for Gov and a win for us!

How so? Only if you have minimal expenses, unless you can get that negotiated as being picked up by client co

[mudskipper]

Not just gov.uk - any organisation covered by the FOI act, so includes BBC, TfL, etc, etc.. Pages and pages at the end of the Consultation document

https://www.gov.uk/government/upload...egislation.pdf

[youngguy]

How so? Only if you have minimal expenses, unless you can get that negotiated as being picked up by client co

Yeah, only with low expenses . I did have an idea that contractors could just book their hotels through the PS dept system. A few years ago if I did business away for a Gov dept I'd just ring their train and hotel hotline and pick the tix up at the station. They wanted it this way as it made their accounting more straightforward.

I was concerned at the time for IR35 but that wouldn't be an issue anymore. That could possibly be negotiated locally as it is often a central coast code so doesn't hit the budgets in quite the same way?

[LondonManc]

Yeah, only with low expenses . I did have an idea that contractors could just book their hotels through the PS dept system. A few years ago if I did business away for a Gov dept I'd just ring their train and hotel hotline and pick the tix up at the station. They wanted it this way as it made their accounting more straightforward.

I was concerned at the time for IR35 but that wouldn't be an issue anymore. That could possibly be negotiated locally as it is often a central coast code so doesn't hit the budgets in quite the same way?

Decent rate with no expenses and hassles thereof inside IR35 wouldn't be too bad. Certainly wouldn't be end of world and would make an extra 20% on private sector dayrate seen reasonable too.

[youngguy]

Decent rate with no expenses and hassles thereof inside IR35 wouldn't be too bad. Certainly wouldn't be end of world and would make an extra 20% on private sector dayrate seen reasonable too.

No more ltd admin as well.

I'm not in the public sector anymore but for someone like myself who has around 6-7k expenses pa (not Inc pension) a bit of a rate increase could cover the hit - but let's see what the detail on Dec 5th and subsequent calculators say.

[LandRover]

No one concerned that HMRC will take the view, you did same role prior to April 2017, and now your inside IR35, so lets investigate why you thought you were outside before.

This is the elephant in the room concern for any contemplating staying in a public sector contract.

[LondonManc]

No one concerned that HMRC will take the view, you did same role prior to April 2017, and now your inside IR35, so lets investigate why you thought you were outside before.

This is the elephant in the room concern for any contemplating staying in a public sector contract.

But an interesting gambit for those moving from private to public.

If you're staying in a PS role, you'd need to change behaviour and so on - accept a works phone, take a phone call out of hours, etc and get yourself balls deep in IR35. That will only work if you weren't behaving as a disguised permie before though.