Contractor Leaving Public Sector (NHS)
Here’s the story of a contractor leaving public sector because of Prime Minister Theresa May’s IR35 changes. He says he is never going to come back.
A while ago we told readers of a contractor who the NHS forced to sit HMRC’s new online IR35 Employment status test.
He sat it at the same time as 4 other NHS IT Contractors.
Watching this was their manager and a woman from HR.
HR Woman Overrode Manager on IR35 Test
Every time they convinced their manager that they should answer a question in an IR35 positive manner for them, the HR woman stepped in and argued against it.
The manager didn’t want to overrule the HR lady.
They went with a majority verdict of the contractors every time bar that.
This is against the Government’s edict which said that they should be assessed individually.
The test found them all inside IR35.
All NHS Contractors Inside IR35
However, that doesn’t matter now with the NHS declaring all their contracts inside IR35 from now on.
So, it doesn’t matter if a contractor is outside IR35 or inside IR35.
The contract job is inside it.
So, this all means that NHS contractors will suffer a fall of between 15% and 20% in their income.
We hear of contractors elsewhere leaving the NHS and other public sector departments in droves.
Contractor Leaving Public Sector for Good
Well, we know that this is true of this guy.
He said “it still is the case that every single one of us is considered inside IR35 at the moment.
“I have been made an offer for a new contract in the private sector and I’m leaving the NHS.
“I’m never coming back to the public sector.
“I’m aware that this new IR35 will spread to the private sector in April 2020..
“However, at least the private sector will be better prepared to handle it without humiliating their contractors.”
Contractor Escapes Theresa May’s Clutches
So, that’s one contractor whom HMRC, Theresa May and Philip Hammond won’t be able to fleece through terrorising their department heads – for now.
However, as this contractor says, this is just the first step.
Theresa May and Philip Hammond will roll this out in the private sector in April 2020..
Contractors, and their representatives, readied themselves for this battle – to no avail.
Maybe they still have a chance to lobby against it and defeat it.
If not, the game will finally be up for UK Contractors.
Ad – Contractor Services
For all necessary business insurance, including IR35, try Business Insurance for Contractors
If you do need an umbrella company you could try one of the following:-
Umbrella Companies for Locum Doctors, Agency Nurses, Vets, Dentists and GPs
Do you need some professional advice on which umbrella company is right for you? Do you want to get better returns from your Umbrella Company? Fill out the form below to receive expert advice.