A combination of factors brought this case down. The simple fact that it concerned a succession of contracts and extensions, commencing before the introduction of IR35, all for the same client, the terms of which contracts changed in details from contract to contract, left a fair degree of uncertainty as to what the terms actually were. Plus, the succession of changes, intended to create a more IR35-friendly background, probably lead to the conclusion that they were solely there for that purpose, and thus undermined their own credibility – the damage had already been done.
The succession of extensions compounded the risks – just as there are ways in which a later and better worded extension can potentially improve the position for earlier periods, provided it accords with reality, the converse can potentially apply – i.e. earlier less favourable terms can drag down later and more favourable terms. It’s a question of whether or not one can show that the later term in fact more accurately represents the reality.
It has long been recognised that overstaying one’s welcome with a particular client can compound IR35 risks, particularly where (as here) an appearance is created of the individual gradually becoming integrated into a team.
The fact that the agency-client contract had been entered before IR35 was even a twinkle in the eye of Gordon Brown that clearly did not help!
On Control, the case makes clear that where
• an engagement is to do work allocated as the contract progresses (as opposed to agreed at the outset), that may be capable of amounting to a sufficient degree of ‘control-what’
• there is a submission to guidance, or monitoring, or appraisal, that may be capable of amounting to a sufficient degree of ‘control-how’ to put the hypothetical relationship between individual and client at risk of being considered to be one of ‘employment’, for IR35 purposes.
Clearly, contractual provisions in early contracts which expressly provided that the contractor company was engaged to provide the individual to perform services under the client’s
• ‘direct supervision and control’ (first contract)
• ‘direction’ (second contract)
and requiring the individual to comply with ‘customary rules and regulations for the conduct of the client’s own staff and the client’s customary working procedures and security measures’ were unhelpful, even as background and not specifically relied on in the conclusions. It’s hard to interpret them in any other way than that the individual was expected to ‘fit in’ and become part and parcel of the client’s organisation as if he were an employee.
The true meaning of Mutuality of Obligation – ‘MOO’ – may be taken to have been further clarified; whilst it remains a negative from an IR35 viewpoint to be entitled to payment other than for services actually provided, to avoid that is not a complete get-out; at its barest essential, an obligation to provide services personally (i.e. without a genuine and unfettered right to substitute), in return for payment, will generally be regarded as sufficient MOO to constitute the basis for an employment-type relationship, if other factors too support that conclusion. So it must now be accepted that MOO can exist, without any obligation on the part of the engager to either provide work, or to pay in lieu; though of course if there were such obligations, they would clearly be additional negative factors.
On Substitution: the contractor was a 'one-man' company, and it was said that its sole raison d’être was to supply the individual’s services; the suggestion was made that the fact that such a company entered a contract which did not mention the individual by name might not of itself be sufficient to undermine the implication of an obligation to provide services personally. Admittedly here it was in the context of a sequence of contracts, of which some earlier and some later did name the individual. Nevertheless, this gives some cause for concern.
Two or more contractors might consider using a ‘partnership company’, to help avoid the suggestion that the sole raison d’etre is to supply the services of but one individual. They would need to manage this themselves, of course, to steer clear of the MSC legislation. But for such a company to contract for specified services, without any individual being named, would clearly help avoid the suggestions here that the only implication was that the one person behind the company would be doing all the work.
Overall
Whichever way one views it, this is a case which sets out the detailed interpretation of IR35, in a way which is clear and logical, and will provide a valuable first point of reference for the future. You may not like it, but at least this spells out what you have to do to work around it!
Analysis written and provided by Roger Sinclair, a legal consultant at Egos, a legal advisory for IT contractors.
Wednesday, September 10, 2008
Friday, September 5, 2008
IT contractor liable for £99,000 tax after losing IR35 case
The High Court has ruled against an IT consultant who was fighting a £99,000 tax demand for work he completed on behalf of motoring organisation the AA.
The Professional Contractors Group (PCG), which represents UK IT freelancers, has expressed its shock at the judgement, which it said could have major implications for other consultants.
The "Dragonfly" IR35 case involved PCG member Jon Bessell, the owner of Dragonfly Consultancy. He is now liable for £99,000 in tax. Speaking after the judgment was delivered, he said, "I am devastated by today's news. Not only does it affect my family and me, but all the other freelance professional consultants who are trying to earn an honest living. "I was never an employee of the AA and I simply cannot understand how the High Court has reached its decision. It is a travesty of justice."
The judgement found that Bessell was technically an employee of the AA when completing IT projects for the organisation, and that he was therefore liable for the £99,000 tax demand.
The Professional Contractors Group supported Bessell in bringing his appeal because of the potential wider implications of the case.
PCG managing director John Brazier said, "This is a potentially massive blow to freelancers throughout the country. This case threatens the long-established defences against IR35.
"We will be looking at the judgment in very close detail to work out its full implications."
The Professional Contractors Group will be publishing further guidance on the consequences of the judgment shortly, he said.
* - Article from Computer Weekly.
It is worrying that despite the Government always saying that they support small businesses and the freelancer market they permanently seem to be trying to clamp down on this section of our workforce. Back in 2002 one in ten of the working population was self-employed. I would imagine that this number has only increased in the last few years. Surely this number of people should be supported more. Yes everyone should pay tax (it's not like in the UK we aren't taxed enough) but what is the point of trying to better yourself, earn more, improve your and your family's living standards, add to the economy if all your hard earned money is going to be whittled away. The whole process should be simplified. It is all the Government rules and regulations that mean thousands are spent on Accountancy fees which still don't guarantee you safety from the long arm of the HMRC. Simplify it, make it easier to understand, promote entrepreneurial and innovative thinking, promote small businesses, promote freelancers, because without them this economy would struggle and companies will find skills that they want are now based abroad. It isn't really surprising that many people are looking abroad to try and find that better standard of living!!! I mean, this Government will take 40% of your hard earned money which you have paid tax on all your life and which you want to leave to your loved ones after you have died. Fair - I think not.
The Professional Contractors Group (PCG), which represents UK IT freelancers, has expressed its shock at the judgement, which it said could have major implications for other consultants.
The "Dragonfly" IR35 case involved PCG member Jon Bessell, the owner of Dragonfly Consultancy. He is now liable for £99,000 in tax. Speaking after the judgment was delivered, he said, "I am devastated by today's news. Not only does it affect my family and me, but all the other freelance professional consultants who are trying to earn an honest living. "I was never an employee of the AA and I simply cannot understand how the High Court has reached its decision. It is a travesty of justice."
The judgement found that Bessell was technically an employee of the AA when completing IT projects for the organisation, and that he was therefore liable for the £99,000 tax demand.
The Professional Contractors Group supported Bessell in bringing his appeal because of the potential wider implications of the case.
PCG managing director John Brazier said, "This is a potentially massive blow to freelancers throughout the country. This case threatens the long-established defences against IR35.
"We will be looking at the judgment in very close detail to work out its full implications."
The Professional Contractors Group will be publishing further guidance on the consequences of the judgment shortly, he said.
* - Article from Computer Weekly.
It is worrying that despite the Government always saying that they support small businesses and the freelancer market they permanently seem to be trying to clamp down on this section of our workforce. Back in 2002 one in ten of the working population was self-employed. I would imagine that this number has only increased in the last few years. Surely this number of people should be supported more. Yes everyone should pay tax (it's not like in the UK we aren't taxed enough) but what is the point of trying to better yourself, earn more, improve your and your family's living standards, add to the economy if all your hard earned money is going to be whittled away. The whole process should be simplified. It is all the Government rules and regulations that mean thousands are spent on Accountancy fees which still don't guarantee you safety from the long arm of the HMRC. Simplify it, make it easier to understand, promote entrepreneurial and innovative thinking, promote small businesses, promote freelancers, because without them this economy would struggle and companies will find skills that they want are now based abroad. It isn't really surprising that many people are looking abroad to try and find that better standard of living!!! I mean, this Government will take 40% of your hard earned money which you have paid tax on all your life and which you want to leave to your loved ones after you have died. Fair - I think not.
Thursday, September 4, 2008
TPP Systmone
We are currently looking for candidates who have had experience with TPP Systmone for our NHS client. We have Business / Change Analyst, IT Trainer, Project Coordinator and Data Entry positions going.
The Business / Change Analyst, IT Trainer and Project Coordinator roles are all 7 month contracts. There are 2 Data Entry position, with each being about 24 days ad hoc work.
These are good opportunities to get involved in a NHS project, so please do send through technically detailed CVs asap.
G & G Recruitment are working as an Employment Business.
Any questions, do give us a call.
The Business / Change Analyst, IT Trainer and Project Coordinator roles are all 7 month contracts. There are 2 Data Entry position, with each being about 24 days ad hoc work.
These are good opportunities to get involved in a NHS project, so please do send through technically detailed CVs asap.
G & G Recruitment are working as an Employment Business.
Any questions, do give us a call.
IT industry welcomes technology challenges of 2012 & looks forward to Olympics 3.0
With the Olympic flag now handed to Boris Johnson on behalf of London, Intellect, the trade association for the UK technology sector, highlighted the pivotal role of technology in delivering on the promise of 2012.
With London opting out of competing with Beijing on raw spectacle, the successful delivery of its promise of a green, secure, and integrated Olympics rests on technology. The aspiration is to deliver the first ‘Olympics 3.0’ with spectators being able to enjoy multiple viewpoints, real time Games updates and live travel information through mobile devices. Each audience member will be able to access information previously available only to the sports commentator in the booth.
Intellect’s Major Events Group is comprised of over 220 companies including; Atos Origin, Consult, Deloitte, Hyperion, Nortel and Tricerion. ICT will support over 205 international sporting organisations, 20,000 worldwide media, nine million spectators, and over four billion television viewers of the games. Carrie Hartnell, Transformational Business Programme Manager said: “London will be the focus of the world’s attention in 2012 and will be showcasing the best of British technology. Broadcasting, ticketing, venue management, security and transportation will be delivered through innovative and interconnected technological solutions. Come 2012 technology will be central to London’s Games and its legacy.” 4G mobile devices, contactless access platforms and smart cards will revolutionise the experience of spectators and athletes alike. Using these devices attendees of the London Games will be able to interact with the games in a number of ways including; finding their way through the London traffic, receiving security alerts, buying tickets, web blogging on the Games live, networking with friends across the Olympic village and accessing local wireless networks for close-ups and replays of Olympic events streamed to their mobile devices.
David Birch, Director of Consult Hyperion commented:“By 2012 the technologies – mobile and contactless – will have come together. Major manufacturers, such as Nokia, have already begun to integrate the contactless technology into their mobile phone product range. Once again London has been in the forefront of the development of new applications and services to take advantage of this fantastic platform. Barclays, O2 and TfL have just completed an experiment involving several hundred people who have been using their phones to catch the bus, ride on the tube and buy cups of coffee with a simple wave. The possibilities for 2012 certainly look exciting.”
Transport operators, banks and retailers are continuing to roll out new contactless terminals throughout London, laying down the rails for the next generation of contactless mobile devices to run on. This enabling infrastructure can provide a platform for a whole new set of innovative products and services to support London’s Olympics. Patrick Adiba, Executive Vice President for the Olympic Games at Atos Origin - Worldwide IT Partner to the International Olympic Committee through to the London 2012 Olympic Games, said:"As we complete the delivery of the IT infrastructure and systems for the Beijing 2008 Olympic Games, we see two areas where technology will play a greater role in London in 2012. Firstly in helping to deliver the low carbon Olympic Games from helping people plan their journey to the Games through to how the Games are broadcast around the world. Secondly in improving how the global audiences watch and follow the Olympic Games. In Beijing we have processed more than double the amount of competition data for media and news agencies than we did in Athens four years ago. We believe that this will increase yet further as audiences worldwide expect more detailed and colourful information about the competition events as they happen in the way that they want to receive it."The technology infrastructure being built into London 2012 will enable our Olympics to be environmentally sustainable, making London the low carbon Olympics. From helping people plan their journey more efficiently to intelligent building management, technology will be at the forefront in reducing London’s 2012 carbon emissions.
* - Article from PublicTechnology.net
With London opting out of competing with Beijing on raw spectacle, the successful delivery of its promise of a green, secure, and integrated Olympics rests on technology. The aspiration is to deliver the first ‘Olympics 3.0’ with spectators being able to enjoy multiple viewpoints, real time Games updates and live travel information through mobile devices. Each audience member will be able to access information previously available only to the sports commentator in the booth.
Intellect’s Major Events Group is comprised of over 220 companies including; Atos Origin, Consult, Deloitte, Hyperion, Nortel and Tricerion. ICT will support over 205 international sporting organisations, 20,000 worldwide media, nine million spectators, and over four billion television viewers of the games. Carrie Hartnell, Transformational Business Programme Manager said: “London will be the focus of the world’s attention in 2012 and will be showcasing the best of British technology. Broadcasting, ticketing, venue management, security and transportation will be delivered through innovative and interconnected technological solutions. Come 2012 technology will be central to London’s Games and its legacy.” 4G mobile devices, contactless access platforms and smart cards will revolutionise the experience of spectators and athletes alike. Using these devices attendees of the London Games will be able to interact with the games in a number of ways including; finding their way through the London traffic, receiving security alerts, buying tickets, web blogging on the Games live, networking with friends across the Olympic village and accessing local wireless networks for close-ups and replays of Olympic events streamed to their mobile devices.
David Birch, Director of Consult Hyperion commented:“By 2012 the technologies – mobile and contactless – will have come together. Major manufacturers, such as Nokia, have already begun to integrate the contactless technology into their mobile phone product range. Once again London has been in the forefront of the development of new applications and services to take advantage of this fantastic platform. Barclays, O2 and TfL have just completed an experiment involving several hundred people who have been using their phones to catch the bus, ride on the tube and buy cups of coffee with a simple wave. The possibilities for 2012 certainly look exciting.”
Transport operators, banks and retailers are continuing to roll out new contactless terminals throughout London, laying down the rails for the next generation of contactless mobile devices to run on. This enabling infrastructure can provide a platform for a whole new set of innovative products and services to support London’s Olympics. Patrick Adiba, Executive Vice President for the Olympic Games at Atos Origin - Worldwide IT Partner to the International Olympic Committee through to the London 2012 Olympic Games, said:"As we complete the delivery of the IT infrastructure and systems for the Beijing 2008 Olympic Games, we see two areas where technology will play a greater role in London in 2012. Firstly in helping to deliver the low carbon Olympic Games from helping people plan their journey to the Games through to how the Games are broadcast around the world. Secondly in improving how the global audiences watch and follow the Olympic Games. In Beijing we have processed more than double the amount of competition data for media and news agencies than we did in Athens four years ago. We believe that this will increase yet further as audiences worldwide expect more detailed and colourful information about the competition events as they happen in the way that they want to receive it."The technology infrastructure being built into London 2012 will enable our Olympics to be environmentally sustainable, making London the low carbon Olympics. From helping people plan their journey more efficiently to intelligent building management, technology will be at the forefront in reducing London’s 2012 carbon emissions.
* - Article from PublicTechnology.net
Wednesday, September 3, 2008
Recruitment firm Hays has a job on its hands
Last year, 80,000 people took the next step in their careers thanks to Hays. Alistair Cox was one of them. An industry outsider, he arrived to become chief executive of the specialist recruiter exactly 12 months ago and so far the civil engineer has made a rather good fist of it.
Yesterday's results were a record and were higher than the City had been expecting. Yet to his credit, Cox made no attempt to deny the simple facts that the trends are not moving in Hays' favour.
The UK, despite moves to expand geographically, still accounts for more than half of revenues and the signs are not good. Demand for temporary contracts are flat at best, while permanent placements are falling. In Australia, too, the markets are softening.
Unemployment has so far proved the dog that didn't bark during the current slowdown, but the beast is now clearing its throat. The most bearish economists are now predicting a jobless total of up to 2.5m (compared with around 1.6m now) if the UK slides into a serious recession.
The difficulty for Hays is that with visibility of barely six weeks ahead, it finds it very difficult to predict where its markets are going. The only thing it knows for sure is that they aren't getting any better - particularly in its largest specialities of accounting and finance, and construction and property.
Some analysts moved to downgrade their forecasts yesterday on the expectation of contracting margins, while less buy-back activity may act as a drag on the share price.
For investors, it is not all bad news; Hays has a strong management team and good track record and boasts fantastic cash conversion. It also carries an attractive yield and a strong balance sheet that contains minimal debt.
For Citigroup, for instance, it means the fall in the share price to under 94p places the stock far below the 110p it believes should be a theoretical trough.
However, on balance, the company is more likely to see bad news rather than good in the months to come, and investors are likely to find better value elsewhere. Sell.
* - Article from the telegraph
Yesterday's results were a record and were higher than the City had been expecting. Yet to his credit, Cox made no attempt to deny the simple facts that the trends are not moving in Hays' favour.
The UK, despite moves to expand geographically, still accounts for more than half of revenues and the signs are not good. Demand for temporary contracts are flat at best, while permanent placements are falling. In Australia, too, the markets are softening.
Unemployment has so far proved the dog that didn't bark during the current slowdown, but the beast is now clearing its throat. The most bearish economists are now predicting a jobless total of up to 2.5m (compared with around 1.6m now) if the UK slides into a serious recession.
The difficulty for Hays is that with visibility of barely six weeks ahead, it finds it very difficult to predict where its markets are going. The only thing it knows for sure is that they aren't getting any better - particularly in its largest specialities of accounting and finance, and construction and property.
Some analysts moved to downgrade their forecasts yesterday on the expectation of contracting margins, while less buy-back activity may act as a drag on the share price.
For investors, it is not all bad news; Hays has a strong management team and good track record and boasts fantastic cash conversion. It also carries an attractive yield and a strong balance sheet that contains minimal debt.
For Citigroup, for instance, it means the fall in the share price to under 94p places the stock far below the 110p it believes should be a theoretical trough.
However, on balance, the company is more likely to see bad news rather than good in the months to come, and investors are likely to find better value elsewhere. Sell.
* - Article from the telegraph
Hays Profit Rises on Growth in International Business
By Lenka Ponikelska
Sept. 2 (Bloomberg) -- Hays Plc, Britain's largest recruitment company, said full-year profit rose 13 percent as international business growth in Germany and Asia helped to offset a slowdown in the U.K. and Ireland.
Net income for the 12 months ended June 30 was 188.2 million pounds ($337 million),or 13.33 pence a share, compared with 166.5 million pounds, or 11.39 pence a year earlier, London-based Hays said in a statement distributed by PR Newswire today. That beat the 170 million-pound median estimate of six analysts surveyed by Bloomberg News. Revenue rose 20 percent to 2.54 billion pounds.
Demand for permanent placements in the U.K. and Australia declined, said the London-based recruiter. Hays, which gets about two thirds of revenue from the U.K., has sought to expand in faster-growing markets outside its home country. Hays said in April it plans to boost net fee income from international business to 70 percent within the next 10 years compared with about 42 percent today.
``A number of markets are becoming more difficult,'' Chief Executive Officer Alistair Cox said on a conference call with reporters today. ``We paused investments in one or two places but we have a diversification in 27 countries in broad sectors and there are significant opportunities to grow the business.''
Hays fell 0.75 pence, or 0.8 percent, to 93.5 pence in London, valuing the company at 1.29 billion pounds.
Temporary and permanent placements in the U.K. continue to decline and Hays reduced its workforce in the country by 7 percent in the second half to cut costs, Cox said. Hays expects to reduce its U.K. staff numbers further, he said.
`Clear Signs'
``There are clear signs that the U.K. is heading for recession,'' ING analyst Marc Zwartsenburg said by phone today from Amsterdam. ``They already said the U.K. was deteriorating in the trading statement and today they highlighted it again. There's no real trigger that things will get better.'' Zwartsenburg is reviewing his ``buy'' recommendation on the stock.
In Australia, demand among employers for temporary posts has been ``good,'' while demand for permanent placements is flat and Hays has halted further investment in the country, Cox said.
Net fees, or payments from clients minus payroll costs of workers, advanced 24 percent to 786.8 million pounds, said the company. Fees advanced 9 percent in the U.K. and Ireland to 452.9 million pounds. Net fees in Asia Pacific rose 55 percent to 176.2 million pounds. Germany, which accounts for 40 percent of European revenue, boosted net fees 43 percent.
Hays, which has a workforce of 8,872 people in 27 countries, opened 17 new offices in Germany, France, Spain, Poland, Canada and Brazil in the year while closing two sites in the U.K. and Ireland, said the company.
Hays increased its dividend to 5.8 pence, from 5 pence a year earlier.
To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net
Sept. 2 (Bloomberg) -- Hays Plc, Britain's largest recruitment company, said full-year profit rose 13 percent as international business growth in Germany and Asia helped to offset a slowdown in the U.K. and Ireland.
Net income for the 12 months ended June 30 was 188.2 million pounds ($337 million),or 13.33 pence a share, compared with 166.5 million pounds, or 11.39 pence a year earlier, London-based Hays said in a statement distributed by PR Newswire today. That beat the 170 million-pound median estimate of six analysts surveyed by Bloomberg News. Revenue rose 20 percent to 2.54 billion pounds.
Demand for permanent placements in the U.K. and Australia declined, said the London-based recruiter. Hays, which gets about two thirds of revenue from the U.K., has sought to expand in faster-growing markets outside its home country. Hays said in April it plans to boost net fee income from international business to 70 percent within the next 10 years compared with about 42 percent today.
``A number of markets are becoming more difficult,'' Chief Executive Officer Alistair Cox said on a conference call with reporters today. ``We paused investments in one or two places but we have a diversification in 27 countries in broad sectors and there are significant opportunities to grow the business.''
Hays fell 0.75 pence, or 0.8 percent, to 93.5 pence in London, valuing the company at 1.29 billion pounds.
Temporary and permanent placements in the U.K. continue to decline and Hays reduced its workforce in the country by 7 percent in the second half to cut costs, Cox said. Hays expects to reduce its U.K. staff numbers further, he said.
`Clear Signs'
``There are clear signs that the U.K. is heading for recession,'' ING analyst Marc Zwartsenburg said by phone today from Amsterdam. ``They already said the U.K. was deteriorating in the trading statement and today they highlighted it again. There's no real trigger that things will get better.'' Zwartsenburg is reviewing his ``buy'' recommendation on the stock.
In Australia, demand among employers for temporary posts has been ``good,'' while demand for permanent placements is flat and Hays has halted further investment in the country, Cox said.
Net fees, or payments from clients minus payroll costs of workers, advanced 24 percent to 786.8 million pounds, said the company. Fees advanced 9 percent in the U.K. and Ireland to 452.9 million pounds. Net fees in Asia Pacific rose 55 percent to 176.2 million pounds. Germany, which accounts for 40 percent of European revenue, boosted net fees 43 percent.
Hays, which has a workforce of 8,872 people in 27 countries, opened 17 new offices in Germany, France, Spain, Poland, Canada and Brazil in the year while closing two sites in the U.K. and Ireland, said the company.
Hays increased its dividend to 5.8 pence, from 5 pence a year earlier.
To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net
Tuesday, September 2, 2008
Barts underestimated impact of IT system
Barts and The London NHS Trust said today [1 September 2008] it had underestimated the impact of going live with a new system under the NHS's £12.7bn National Programme for IT [NPfIT].
Difficulties in scheduling patients for appointments have led to operating theatres and clinics being unused at times, despite high demand for them.
The trust is funding nearly £1m for extra temporary staff relating to the NPfIT go-live from its reserves. And it faces a further £1.5m shortfall in income because it may not be able to bill its local primary care trust for the patients it sees and treats.
A spokesman for Barts and The London NHS Trust told Computer Weekly an "intensive programme of measures is in place" which "will allow us to return to our previous performance levels as quickly as possible".
The trust has "apologised publicly to patients, GPs and staff for the difficulties they have experienced," he said.
The spokesman was responding to Computer Weekly's questions after the trust published board papers on its website describing "significant" ongoing problems after the implementation of the Care Records Service,
The trust has had difficulty maintaining an overview of which patients have been treated for what following roll-out of the system. It is paid according to the information it provides to the local primary care trust on the patients it sees and treats. But the trust warns in its latest board papers that income may be much less due to difficulties gathering accurate information on who has been seen for what and when.
A financial paper to the board on the first quarter of the trust's 2008/9 year says:
"There remain significant data quality issues with the Trust's activity and patient activity and income information due to the implementation of the Care Records Service.
"To reflect the high risk around income the trust has provided £1.5m against the first quarter's income."
The paper adds: "There are also known system errors where data which has been entered into CRS [the Cerner Care Records Service system] has not been reflected in the data warehouse and therefore is missing from SLAM [Service Level Agreement and Monitoring system]. These issues have caused [a] significant understatement of both inpatient and outpatient activity and income".
The trust says that BT and Cerner are "working on solutions to stop further errors". With fewer than expected patients being booked clinics and operating theatres have been under-used.
"There is some evidence that April activity was reduced due to the implementation issues of CRS. Clinics were reduced in some areas and issues with bookings meant that in some areas the clinics and operating theatres were not operating their usual capacity".
The trust has directed nearly £1m from central reserves nearly £1m to ICT to "fund additional temporary staff costs relating to the implementation and subsequent validation of CRS".
Bart's and the London Care Records System is based on a patient administration system from US supplier Cerner and BT, London's NPfIT local service provider.
Two other London trusts, Barnet and Chase Farm and the Royal Free Hampstead have also had significant and protracted problems after going live with the Cerner system. There have difficulties at go-lives of trusts outside London too. But the government and the Department of Health want trusts to accelerate plans for trusts to deploy NPfIT systems.
A spokesman for Barts and The London said: "The Trust anticipated that there would be a greater degree of fluctuation in activity levels in the period before and after the CRS [Care Records Service] go-live in April, but we underestimated the level of impact that CRS would have on our operations."
* - Article from Computer Weekly.
As a point of interest, i was at the Royal Free Hampstead only a few weeks ago as my Girlfriend unfortunately had to go into A & E and stay in Hospital for a few days. There was no obvious sign of the significant and protracted problems with the speed of the service or the treatment she received. However, there were signs everywhere explaining that the new system had been installed and that there may be some teething issues.
Good luck to them, sometimes change isn't easy but has to happen!!! If they need a hand with their recruitment of temporary ICT staff they could always contact us.
Difficulties in scheduling patients for appointments have led to operating theatres and clinics being unused at times, despite high demand for them.
The trust is funding nearly £1m for extra temporary staff relating to the NPfIT go-live from its reserves. And it faces a further £1.5m shortfall in income because it may not be able to bill its local primary care trust for the patients it sees and treats.
A spokesman for Barts and The London NHS Trust told Computer Weekly an "intensive programme of measures is in place" which "will allow us to return to our previous performance levels as quickly as possible".
The trust has "apologised publicly to patients, GPs and staff for the difficulties they have experienced," he said.
The spokesman was responding to Computer Weekly's questions after the trust published board papers on its website describing "significant" ongoing problems after the implementation of the Care Records Service,
The trust has had difficulty maintaining an overview of which patients have been treated for what following roll-out of the system. It is paid according to the information it provides to the local primary care trust on the patients it sees and treats. But the trust warns in its latest board papers that income may be much less due to difficulties gathering accurate information on who has been seen for what and when.
A financial paper to the board on the first quarter of the trust's 2008/9 year says:
"There remain significant data quality issues with the Trust's activity and patient activity and income information due to the implementation of the Care Records Service.
"To reflect the high risk around income the trust has provided £1.5m against the first quarter's income."
The paper adds: "There are also known system errors where data which has been entered into CRS [the Cerner Care Records Service system] has not been reflected in the data warehouse and therefore is missing from SLAM [Service Level Agreement and Monitoring system]. These issues have caused [a] significant understatement of both inpatient and outpatient activity and income".
The trust says that BT and Cerner are "working on solutions to stop further errors". With fewer than expected patients being booked clinics and operating theatres have been under-used.
"There is some evidence that April activity was reduced due to the implementation issues of CRS. Clinics were reduced in some areas and issues with bookings meant that in some areas the clinics and operating theatres were not operating their usual capacity".
The trust has directed nearly £1m from central reserves nearly £1m to ICT to "fund additional temporary staff costs relating to the implementation and subsequent validation of CRS".
Bart's and the London Care Records System is based on a patient administration system from US supplier Cerner and BT, London's NPfIT local service provider.
Two other London trusts, Barnet and Chase Farm and the Royal Free Hampstead have also had significant and protracted problems after going live with the Cerner system. There have difficulties at go-lives of trusts outside London too. But the government and the Department of Health want trusts to accelerate plans for trusts to deploy NPfIT systems.
A spokesman for Barts and The London said: "The Trust anticipated that there would be a greater degree of fluctuation in activity levels in the period before and after the CRS [Care Records Service] go-live in April, but we underestimated the level of impact that CRS would have on our operations."
* - Article from Computer Weekly.
As a point of interest, i was at the Royal Free Hampstead only a few weeks ago as my Girlfriend unfortunately had to go into A & E and stay in Hospital for a few days. There was no obvious sign of the significant and protracted problems with the speed of the service or the treatment she received. However, there were signs everywhere explaining that the new system had been installed and that there may be some teething issues.
Good luck to them, sometimes change isn't easy but has to happen!!! If they need a hand with their recruitment of temporary ICT staff they could always contact us.
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