With the ongoing pressure on public sector organisations to cut expenditure and now the additional burden of the new IR35 rules (which come in to effect on 6th April 2017). The new IR35 rules stop contractors being paid via their limited company, which effectively forces them into a PAYE scheme as opposed to paying themselves largely in dividends. This rather large tax burden on many contractors will either force them to leave the Public Sector altogether and switch to the Private Sector or it will push up the daily rate so as to offset the additional tax costs they face.


It’s difficult to predict how many contractors will be affected by this issue or what the effects will be on Public Sector organisations. But there is a general expectation within I.T. departments that taking on experienced contractors for interim or project based work will become more difficult.
For some positions the role may be left empty and the responsibilities spread out to other team members. This also happens for roles where the volume of work is not great enough to justify a full time member of staff. We see this at a lot of organisations which operate critical SQL Server based systems, but have no experienced database administrator to manage them.


This leads to an approach of only maintaining systems when they stop working. Along with increased system downtime and degraded performance, there is also an additional burden on existing staff to carry out roles which they are not trained for.
Intersect Consulting provide a low cost service that manages and maintains your SQL Server Database environments on a daily basis and also provides an on-demand service when required.


Visit our website for further information at www.intersectconsulting.co.uk , several NHS foundations and Local Authorities are already benefiting from our services.