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

[eek]

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.

Or make sure the public sector role you are performing in April isn't the same one you've been doing for the past 18 months...

[LondonManc]

Or make sure the public sector role you are performing in April isn't the same one you've been doing for the past 18 months...

Kind of what the contract rewrites will be about. BA will be rebadged, etc. Dodgy isn't daft. Enough....

[Andy Hallett]

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.

An accountancy firm I have been speaking to are advising contractors to shut down legacy PSC companies prior to April and start afresh with a new company post April for this very reason.

[northernladuk]

An accountancy firm I have been speaking to are advising contractors to shut down legacy PSC companies prior to April and start afresh with a new company post April for this very reason.

You would assume they have a very good understanding of the new rules about this and are giving it as part of a well thought out and executed strategy and not just a knee jerk reaction thinking no further than the IR35 issue. If the latter a lot of people could find themselves in a position where they are unable to contract under a LTD for a few years.

An on the topic of knee jerk... I'd be highly suspicious of anyone giving such detailed actionable advice at this point bearing in mind we just don't yet and need to wait a little bit before jumping to conclusions.

[westtester]

An accountancy firm I have been speaking to are advising contractors to shut down legacy PSC companies prior to April and start afresh with a new company post April for this very reason.

Isn't Hector automatically notified when a company is being shut down? Seems like the ideal way to invite further investigation.

[DotasScandal]

If the latter a lot of people could find themselves in a position where they are unable to contract under a LTD for a few years.

How so? As far as we know it's perfectly acceptable, unless you are claiming Entrepreneurs Relief, that is.

[northernladuk]

How so? As far as we know it's perfectly acceptable, unless you are claiming Entrepreneurs Relief, that is.

Exactly this. If this isn't communicated properly, bearing in mind the vast number of contractors that haven't a clue how to do stuff, it could end in a lot of tears.

I'll bet everything I have someone will cock it up.

[eek]

An accountancy firm I have been speaking to are advising contractors to shut down legacy PSC companies prior to April and start afresh with a new company post April for this very reason.

Hmm a plan that would net said accountancy firm £1-5,000 per contractor.

[Maslins]

Hmm a plan that would net said accountancy firm £1-5,000 per contractor.

Unsure how you figure that? I don't think many accountancy firms make big bucks on the starting/ending of a contractor relationship. To be honest if there is "easy money" it's the contractors that carry on for years. They get the hang of what they need to do, what the accountant wants etc, but still pay the same as the newbies asking lots of questions and those leaving.

MVL Online is however excited at Andy's suggestion

[jonnyboy]

Hmm a plan that would net said accountancy firm £1-5,000 per contractor.

What he said. I spoke to my accountant a few months back regarding my long term exit plan (winding up my company in 6-7 years and taking ER) and he said that winding up a company was not just a question of 'end trading, goodnight' - there was the wrap up of accounts, applying to HMRC for a wrap up notification, statatory noitice to any creditors and debtors, calculating tax liabilities, the actual closure, closing bank/vat/hmrc accounts, taking directors off listing, money transfers and ER processing (I know in this case ER is not part of the fiddle). My accountant said he used two specialist firms, and the current price tag was around £1200 - £1500 depending on assets in the company and generally took 4-9 months.