End of IT contracting this June?

[SueEllen]

I try to avoid both TBH, but it seems to me that the Fail is most definitely not on our side. It helps that some of the most notorious examples come from the BBC or other PSBs (e.g. Ed Lester).

Yeah they detest the public sector particularly the BBC and NHS. Doesn't mean they aren't happy to have workers off their payroll as they are a private enterprise.

[AtW]

It will never be allowed to crash. Carney will see to it (even if it means devaluing the pound like there's no tomorrow).

What would he do if suddenly people with big mortgages get a lot less income due to massively increased tax? The rates are already very low, that card was played.

[Craic]

But the 64 million dollar question is, as the article asks, will Hammond and May roll out the public sector iR35 changes to the private sector?

[DotasScandal]

But the 64 million dollar question is, as the article asks, will Hammond and May roll out the public sector iR35 changes to the private sector?

They will try - 100% certain.
The justification will be that the Government has identified an "unfairness" (of their own making, but never mention that...) due to the difference of treatement of contractors between the public and private sectors.
Cue announcement that the changes will now be applied to the private sector in order to "level the playing field" - taking effect at the time of announcements (shock & awe method).
A long campaign of retrospective investigation by HMRC will follow to look into the affairs of those who suddenly found themselves "inside" courtesy of "the tool". A "Guilty by default" approach will be adopted, a la APN.
Trust that anything that's not nailed down will be looted.
Cause, you know..."the country needs money" (David Gauke).

[ChimpMaster]

They will try - 100% certain.
The justification will be that the Government has identified an "unfairness" (of their own making, but never mention that...) due to the difference of treatement of contractors between the public and private sectors.
Cue announcement that the changes will now be applied to the private sector in order to "level the playing field" - taking effect at the time of announcements (shock & awe method).
A long campaign of retrospective investigation by HMRC will follow to look into the affairs of those who suddenly found themselves "inside" courtesy of "the tool". A "Guilty by default" approach will be adopted, a la APN.
Trust that anything that's not nailed down will be looted.
Cause, you know..."the country needs money" (David Gauke).

I know there is a vein of humour/sarcasm in there but - for once - I don't think the government will or could make this change retrospective, else they would have done it to the PS contractors. Though I agree, this country is well and truly on the road to disaster in this respect.

Though I wonder, how did/will HMRC treat the PS contractors who had a Ltd Co with retained profits? Will those contractors be allowed to keep using the same Ltd, but with all post-April invoices being subject to PAYE?

[LondonManc]

I know there is a vein of humour/sarcasm in there but - for once - I don't think the government will or could make this change retrospective, else they would have done it to the PS contractors. Though I agree, this country is well and truly on the road to disaster in this respect.

Though I wonder, how did/will HMRC treat the PS contractors who had a Ltd Co with retained profits? Will those contractors be allowed to keep using the same Ltd, but with all post-April invoices being subject to PAYE?

I'd imagine that it's up to the PS contractor as to what they want to do with their limited company; dormancy seems the most sensible option until the storm is weathered and the future becomes clearer.

[DotasScandal]

I know there is a vein of humour/sarcasm in there but - for once - I don't think the government will or could make this change retrospective, else they would have done it to the PS contractors.

We're not talking about retospective application of the IR35 rules, we're talking about retrospective investigation of those who will have signaled themselves by now being "inside" (with the kind help of "the tool") when they had declared themselves "outside" previously yet didn't change roles.

[TheFaQQer]

Will those contractors be allowed to keep using the same Ltd, but with all post-April invoices being subject to PAYE?

As I wrote in the FAQ, I don't expect it to be an option for contractors after a little while. There are plenty of downsides to the agencies and no upsides, so why would the agency change their systems when there are much easier options for them?

Keep the company if you want to, or look to close it down to move the money into your pocket rather than the company, but I don't expect there will be an option to work in public sector via your own limited company by this stage next year because there is so little incentive for the agency to deal with you this way.

[matzie]

This is all conjecture and we know nothing for sure yet.

Whatever happens, those of us who are genuinely in business on our own account will adapt to change, and we will survive. We may be worse off, we may have to tighten our belts, but we will survive. It will be ok. The sky will not fall.

[Craic]

The sky might not fall but contractors take home pay will - by up to 20%.