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 couple of weeks 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 shoud be assessed indivdually.
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 may spread in the private sector.
“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.
However, as this contractor says, this may just be the first step.
May and Hammond may well roll this out in the privaet sector in a year’s time.
It’s about time contractors, and their representatives, readied themselves for this battle.
If they bury their heads in the sand, as some are doing at the moment, this will come as a shock to them in a year’s time and they will be unprepared.
However, if they prepare now, they still have a chance to lobby against it and defeat it.
If not, the game will finally be up for UK Contractors.
Contractors group IPSE should prepare for battle now
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