Public sector.... switch to umbrella, really?

[likewise]

The advice that you have been given at around £680 to £730 as a take home pay sounds about right without looking at your personal circumstances.

It may be worth discussing this with your end client, in particular concentrating that discussion around your working practices as without assessing your contract I can't see how anyone could arrive at the conclusions that a) You are going to be found to be caught by the new public sector off payroll worker regulations and b) therefore may want to consider an Umbrella solution.

It is your end client who will provide information to the fee payer (agency) about your status but maybe the agency don't want the risk or the legwork.

You could either discuss an increase to your current day rate or look at contracts in the private sector as alternatives.

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I doubt they would increase the day rate, although there are another 3 contractors here who are in the same position as me, so I think if we all pushed at the same time (coincidently at the start of the financial year) for an increase in rate, we may get it. I think I will certainly be looking for a private sector gig over the next 2 months.

[SueEllen]

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Thanks for the info, ill have a good look at them links tonight.

Fortunately the agency I work with on this one are quite good, they have assured us 100% that they will pay into our ltd company business bank accounts for any work done prior to 6th April which they should as well. I am also pushing for a completely new contract from them for the remainder of the project after the 6th of April so that it is not a continuation of the previous one under my limited company and so far it looks good, the agency are willing. If I am to continue working here (and it wont be for long probably given the loss of pay) then I will have a new contract for the remainder of this project im working on and this will be paid via umbrella.

I am worried that this could go to the private sector though, literally this was the first I had heard of this at the end of last week when the agency told us. If this does go to the private sector then doing contracting will be a thing of the past for most people, unless companies start increasing their rates massively, which I doubt. Another point, haven't the government actually thought that this might affect councils, the NHS etc....who rely on a lot of contractors to do short migration projects etc... ?? suddenly them contractors will not be available because it wont be worth it, all the government seems to think about it lining the tax coffers and not what is in the best interest of public services.

"It's only fair."

[northernladuk]

Yup. Plenty of discussion about this hitting private sector already. As I said, you are 4+ months behind the curve here.

And just to make the point again. Carrying on in the same role however you dress it up could be an issue.

[LondonManc]

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Thanks for the info, ill have a good look at them links tonight.

Fortunately the agency I work with on this one are quite good, they have assured us 100% that they will pay into our ltd company business bank accounts for any work done prior to 6th April which they should as well. I am also pushing for a completely new contract from them for the remainder of the project after the 6th of April so that it is not a continuation of the previous one under my limited company and so far it looks good, the agency are willing. If I am to continue working here (and it wont be for long probably given the loss of pay) then I will have a new contract for the remainder of this project im working on and this will be paid via umbrella.

I am worried that this could go to the private sector though, literally this was the first I had heard of this at the end of last week when the agency told us. If this does go to the private sector then doing contracting will be a thing of the past for most people, unless companies start increasing their rates massively, which I doubt. Another point, haven't the government actually thought that this might affect councils, the NHS etc....who rely on a lot of contractors to do short migration projects etc... ?? suddenly them contractors will not be available because it wont be worth it, all the government seems to think about it lining the tax coffers and not what is in the best interest of public services.

If you're doing exactly the same role, then you'll still be at significant (unfair) risk of a retrospective tax grab by HMRC

[eek]

Yup. Plenty of discussion about this hitting private sector already. As I said, you are 4+ months behind the curve here.

And just to make the point again. Carrying on in the same role however you dress it up could be an issue.

+1. If HMRC used Agency reporting to generate a list of targets working with the same agency now inside IR35 would keep you on the list as they may look at NI numbers rather than payee to details to determine who to investigate.

Hence the advice to find a different agency. However if you've only been there 3 months the risk isn't that great.

[LondonManc]

+1. If HMRC used Agency reporting to generate a list of targets working with the same agency now inside IR35 would keep you on the list as they may look at NI numbers rather than payee to details to determine who to investigate.

Hence the advice to find a different agency. However if you've only been there 3 months the risk isn't that great.

The exposure isn't that great either, fortunately.

[likewise]

+1. If HMRC used Agency reporting to generate a list of targets working with the same agency now inside IR35 would keep you on the list as they may look at NI numbers rather than payee to details to determine who to investigate.

Hence the advice to find a different agency. However if you've only been there 3 months the risk isn't that great.

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Yeh I haven't been here long, only my second week, and the contract will last about 3-4 months, its an exchange migration and looking at it now, should be complete on time in May. Hopefully ill get 2 months decent pay out of it and then ill just have to take a hit on the umbrella pay for the remaining month or so, and with any luck there wont be any questions asked, then ill just look for a private sector role and keep in mind to avoid public sector in the future. I do feel for IT managers in the NHS and councils as they are going to find themselves well out of luck when they need skilled contractors in the future, unless they can afford to burn up their budgets quickly, this government is a joke, if I didn't have a family now I would go back and work abroad again.

[LondonManc]

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Yeh I haven't been here long, only my second week, and the contract will last about 3-4 months, its an exchange migration and looking at it now, should be complete on time in May. Hopefully ill get 2 months decent pay out of it and then ill just have to take a hit on the umbrella pay for the remaining month or so, and with any luck there wont be any questions asked, then ill just look for a private sector role and keep in mind to avoid public sector in the future. I do feel for IT managers in the NHS and councils as they are going to find themselves well out of luck when they need skilled contractors in the future, unless they can afford to burn up their budgets quickly, this government is a joke, if I didn't have a family now I would go back and work abroad again.

If it's a short term exchange migration, I'd be looking at asking them to put it outside of IR35 given how short term it is.

[SueEllen]

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Yeh I haven't been here long, only my second week, and the contract will last about 3-4 months, its an exchange migration and looking at it now, should be complete on time in May. Hopefully ill get 2 months decent pay out of it and then ill just have to take a hit on the umbrella pay for the remaining month or so, and with any luck there wont be any questions asked, then ill just look for a private sector role and keep in mind to avoid public sector in the future. I do feel for IT managers in the NHS and councils as they are going to find themselves well out of luck when they need skilled contractors in the future, unless they can afford to burn up their budgets quickly, this government is a joke, if I didn't have a family now I would go back and work abroad again.

Sure your other half really doesn't want to? There are more kid friendly countries in the world.

[lucyclarityumbrella]

Believe me, I am getting calls left, right and centre where contractors are "just hearing about this", and many that have not even considered that the work in March will need to be paid before 6th April. I know sometimes brollies are not overly popular, but as HMRC squeeze more and more people under employment taxes it is an option to consider. I am seeing more and more opting for the pensions route, so they can gain some tax saving.