Is it worth moving to contracting?

[jamesbrown]

The private sector will just say no. Imagine the complexities of the government even approaching this. Easier in the public sector as they can dictate what happens with public money etc. but in the private sector they have very little ability to influence how a company performs it's business. I just can't ever see it happening.

Say "no" to what? "No, I'm not going to accept those statutory tax liabilities, you HMRC meanies!"

The tax risk is on the fee payer. They simply need to make the rules less opaque (statutory definition) to increase the compliance ratio. Compliance teams will do the rest, with BoS/BAU roles being the first the suffer (e.g. replaced with FTC). With the current IR35 case law, some clients will be willing to take the risk, following necessary precautions (e.g. professional reviews), and some won't. All I'm saying is that this trade-off won't be the same in the private sector, hence the ratio will be down on the PS. But there will still be many more caught, even without a statutory definition.

[oscarose]

Hi,

Am currently a permanent employee but have been thinking of going into contracting for a few months now.

However, have heard that IR35 now applies to contractors working in public sector and it will also be introduced next April for private sector.

Is it worth going into contracting now for 9/10 months considering there will be changes, will there be any benefit of contracting even if inside IR35 for any sector from next year compared with permanent? Will rates and experience be a factor?

Just give it a try and see what happens and decide if it's for you. Don't die wondering.

Worse case and it doesn't work out, then just get another job. Simple.

[radish2008]

Say "no" to what? "No, I'm not going to accept those statutory tax liabilities, you HMRC meanies!"

The tax risk is on the fee payer. They simply need to make the rules less opaque (statutory definition) to increase the compliance ratio. Compliance teams will do the rest, with BoS/BAU roles being the first the suffer (e.g. replaced with FTC). With the current IR35 case law, some clients will be willing to take the risk, following necessary precautions (e.g. professional reviews), and some won't. All I'm saying is that this trade-off won't be the same in the private sector, hence the ratio will be down on the PS. But there will still be many more caught, even without a statutory definition.

Before you get to that point there will be a consultation. In fact it won't ever get to that point. The key difference is that public sector can be told - private sector cannot. Unless there's a change in the law. Which there won't be.

[Hertsseasider]

Hi,

Am currently a permanent employee but have been thinking of going into contracting for a few months now.

However, have heard that IR35 now applies to contractors working in public sector and it will also be introduced next April for private sector.

Is it worth going into contracting now for 9/10 months considering there will be changes, will there be any benefit of contracting even if inside IR35 for any sector from next year compared with permanent? Will rates and experience be a factor?

Fancy a job swop ?

[SueEllen]

Before you get to that point there will be a consultation. In fact it won't ever get to that point. The key difference is that public sector can be told - private sector cannot. Unless there's a change in the law. Which there won't be.

^^^This.

Energy companies are currently lobbying the Tories over the energy cap. Now imagine if they try and bring this in the private sector they will have every industry going lobbying them.

[jamesbrown]

^^^This.

Energy companies are currently lobbying the Tories over the energy cap. Now imagine if they try and bring this in the private sector they will have every industry going lobbying them.

Lobbying is unending. The Tories have pushed through a ton of measures in recent years that have been opposed by one sector or another, even multiple sectors. The vast majority of contractor service providers expect this rollout at some point, and I agree with them.

[skysies]

Relocate to EU, here in the office there's six contractors, five of us Brits.

That's what I'm planning to do. Really getting tired of all that uncertaintly here. It's now like a living in a never ending nightmare, constantly expecting more bad to come, whether it's Brexit, IR35 changes, you name it...

[kaiser78]

Not now. There is a Brexit tsunami coming your way. In a couple of months we may be all glad to have a job, no matter whether it's contract or perm.

Which may on the other hand create a whole host of opportunities...

Just give it a try and see what happens and decide if it's for you. Don't die wondering.

I wonder if I should have that on my grave stone...?

[fatJock]

I've recently moved after a lifetime of perm and am loving it.

Depends how confident you are in your skill set and how much you hate your perm job

In all seriousness, don't pack a perm job in unless you have a cast iron contract or a year's worth of money in the bank.

If you have either/both then dive in. I've lurked on this forum for 5years+ and there has never been a good time to leap.

[Big Blue Plymouth]

Just give it a try and see what happens and decide if it's for you. Don't die wondering.

Worse case and it doesn't work out, then just get another job. Simple.

More words of wisdom from OR