Public sector contracting decision

welshboy

welshboy

welshboy

Associate
Joined
17 Jan 2006
Posts
1,399
Location
North Wales
hi,

So I contract for the Public Sector as Ltd company for 7 years meaning at the end of the month I have to either use an umbrella service or go perm.
Now the options are:

1) I carry on contracting via umbrella but it's 20-30% pay loss and I'd have to close the Ltd company.
2) I go perm, this is over -10k drop and they won't budge on salary.
3) I leave and find alt work contracting which i know is the lifestyle and carry on contracting

Only worry I have is I've never been out of contract although got a few months warchest I've always been recommended and moved contracts (in public sector).
I don't have long to decide but any help would be appreciated, it's causing a few sleepless nights

Thanks
 
Have they given you an in or out decision yet??? You dont want to find yourself IN and then have HMRC ask you about your previous 7 years based on that decision. Id cut and run and maybe wait til the dust settles
 
jimjamuk said:
Have they given you an in or out decision yet??? You dont want to find yourself IN and then have HMRC ask you about your previous 7 years based on that decision. Id cut and run and maybe wait til the dust settles
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we have around 150 limited companies at the place i work and they have just told us to go PAYE or umbrella if we want to keep working here. no exceptions and they aren't checking if we would fall inside IR35 or not.
also been told HMRC will not check back on our previous employment.
 
I have heard there is a lot of PS bodies who just cant be bothered with looking at working practices and just declaring everyone in. Did you get the HMRC answer from HMRC or from some HR bod, because you'll be the one being investigated and not the PS body. Whilst its a risk - its one that you will have to weigh up and make a decision on.

Out of interest what are the others doing - many leaving or staying put??
 
jimjamuk said:
I have heard there is a lot of PS bodies who just cant be bothered with looking at working practices and just declaring everyone in. Did you get the HMRC answer from HMRC or from some HR bod, because you'll be the one being investigated and not the PS body. Whilst its a risk - its one that you will have to weigh up and make a decision on.

Out of interest what are the others doing - many leaving or staying put??
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no answer from HMRC, but been told due to rumours flying around that once we change it would trigger an investigation is not true. saying that about 2-3 years ago we had to do the IR35 business entity test or whatever it was called and i passed no problem.

some people have left, rest is changing over. then either start looking from there or stay put. depends on the person really. I guess it's also unique since some of the contractors here have been on site for 30+ years, so they are kinda settled in.
 
The only other option I got is if I take perm just to pay the mortgage, make the company dormant for few months while I find work, going to be a lot of competition and jobs scarce I imagine.
 
well I wouldn't advocate completely leaving the PS but if a load of contractors leave then they are going to be recruiting for those gaps again - potentially an opportunity to increase the rate to reduce the effect of the increase tax liability and a nice clean break from the previous contract.
 
i recently changed jobs, from one private sector role to another. after i had left my current contracting job and within the weeks down time i had given my self the new client/employer demanded i went paye or no job!!!

im hoping this does not catch on in the private sector.
 
dr_volki said:
https://www.theregister.co.uk/2017/03/16/uk_gov_gearing_up_for_ir35_crackdown/

wait and see, but the rumors have been out there
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With the fallout from the NI increase and the upcoming nightmare that is going to occur in the PS I doubt this is going to happen soon. I doubt the private companies are going to swallow that easily.

How has your decision gone?? Looking to go or stay - with 7 years under your belt do you have a good warchest to see you through until things settle down??
 
jimjamuk said:
With the fallout from the NI increase and the upcoming nightmare that is going to occur in the PS I doubt this is going to happen soon. I doubt the private companies are going to swallow that easily.

How has your decision gone?? Looking to go or stay - with 7 years under your belt do you have a good warchest to see you through until things settle down??
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no i don't, i'm not on a huge rate so will switch over to PAYE for now and keep looking around for another job. the thing for me is i never looked for contract work in the first place, it's just the way they employed everybody at the time. :(
also been asked to supply my salary expectation for a staff position. still waiting to hear back from this.
 
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