Re: IR35
Many of the contractors working on these projects are not directly contracting to the HO. Many are contracting to 3rd party commercial organisations (large IT consultancies), and provided the 3rd party are providing 'services' rather than bodies filling named positions defined by the HO, there may have been a decision that there is sufficient separation that the HO does not need to make an IR35 determination for these contractors.
I don't know about direct contractors, by thoughts are that probably the contracts have been terminated and renegotiated with changed conditions (to break continuity to prevent retrospective evaluation of the previous tax years) and a significant rate increase to make up for any tax and NI deductions.
Me, I already work through an umbrella, paying the deemed tax and NI on pretty much everything bar valid expenses, so these changes don't affect me.
We'll have to see whether the October budget will attempt to impose similar IR35 provisions on non-government organisations for April 2018, because that will probably cause a much greater disruption!
Biting the hand that feeds IT
