Thursday, 2 February 2012

What will the backlash be for Interim Managers in the Public sector??

What will the backlash be for Interim Managers in the Public sector??

The government is investigating how the head of the Student Loans Company worked as an Interim Manager and had his £900 a day rate paid through a private Limited Company, thereby avoiding PAYE and National Insurance contributions worth £40,000 pa. Although Students Loans Chief Executive had the deal approved by Ministers and HMRC, Chief Secretary to the

Treasury Danny Alexander said that Mr Lester's deal has been stopped and he will now pay PAYE and NI as a standard employee would. Mr Alexander has also written to all other Government departments to ascertain how wide spread the practice of using Interim managers in long term contracts is. A full review is expected to follow.

Mr Lester had a 2-year contractual agreement. Will this mean that anyone working as an Interim Manager in the Public sector for a period longer than 12 months will have to start paying PAYE and NI as a standard employee???

Personally, I can see Interims avoiding work within the Public sector if they were forced to go 'on the books' after 12 months. Or even worse I could see Interims declining to work past the 12 month point, leaving projects shelved or in disarray!!!!

Would appreciate your comments on this, particularly from those Interim Managers working in the Public sector.

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