The official Budget 2017 DOOM thread

[eek]

Sometimes gets forgotten that none of us have ever held a gun to a clients head and made them give us a contract. If it didn't work for them they wouldn't do it.

We have all made a judgement based on finance and personal circumstances to join the flexible workforce. The financial argument is dwindling year on year. More and more people are going to start drifting back to permanent employment where you will get paid holiday, maternity/paternity and your employer will have to pay to train and develop you. I imagine this is an unintended consequence but it makes industry less agile.

This is all of course nonsense at the end of half a century of a slow dance between us, the HMRC and industry. A majority of us should be freelancers and not incorporated. We should never have taken a separate path to other self employed people.

We could be freelancers but would have to search for work ourselves. Instead we use Limited companies and save ourselves a lot of hassle by getting agencies to find the work for is...

[TheCyclingProgrammer]

The financial argument is dwindling year on year. More and more people are going to start drifting back to permanent employment where you will get paid holiday, maternity/paternity and your employer will have to pay to train and develop you.

I guess it really depends on what you do, who you work for and what your rate is. I'm annoyed by the principle of what was announced in today's budget just because it doesn't make that much sense to me (the financial impact is minimal) but I'm under no illusion that I'm still much better off working for myself. In a bad year I can normally turnover around the equivalent amount to what I'd be getting as a full-time salary, in a good year I can earn anywhere from 50-100% more than this.

Of course, if you're a long-term bum on seat contractor who does loads of work for the public sector, works mostly on-site in the same location (so can't claim travel expenses), is borderline caught by IR35 etc. then I can see how contracting might seem less appealing right now...better make sure your rate is worth it.

My advice to those contractors is to try and move away from the normal agency/client 12-24 month gig type arrangement and try and take a more freelance/consultant approach. Try and find clients directly, differentiate what you offer - you're not just a bum on seat, your an expert who can save your client money. You'll have more control over what you charge (I've put my rate up almost every year and have more than doubled what I was charging when I started 8 years ago) and will get more more interesting projects .

Its higher risk because you need to find your own gigs but if you're successful you'll be able to be more selective and will even be turning away work, you'll have no agency bulltulip to deal with and you greatly reduce your chances of being caught by IR35.

If this approach doesn't appeal, then perhaps a return to permie-dom is the way forwards.

[SussexSeagull]

We could be freelancers but would have to search for work ourselves. Instead we use Limited companies and save ourselves a lot of hassle by getting agencies to find the work for is...

We could still have agencies find work for us but the payment model might have to change.

Somewhat academic point now though.

[TheCyclingProgrammer]

FWIW I don't see anything else in the red book of note.

Nothing else announced re: FRS changes so I assume they are going ahead as planned and outlined. Just waiting for confirmation from accountant on whether to wait until end of VAT quarter to switch (end of April) or just do it now (you can definitely leave mid-period).

[afrocentric]

I guess it really depends on what you do, who you work for and what your rate is. I'm annoyed by the principle of what was announced in today's budget just because it doesn't make that much sense to me (the financial impact is minimal) but I'm under no illusion that I'm still much better off working for myself. In a bad year I can normally turnover around the equivalent amount to what I'd be getting as a full-time salary, in a good year I can earn anywhere from 50-100% more than this.

Of course, if you're a long-term bum on seat contractor who does loads of work for the public sector, works mostly on-site in the same location (so can't claim travel expenses), is borderline caught by IR35 etc. then I can see how contracting might seem less appealing right now...better make sure your rate is worth it.

My advice to those contractors is to try and move away from the normal agency/client 12-24 month gig type arrangement and try and take a more freelance/consultant approach. Try and find clients directly, differentiate what you offer - you're not just a bum on seat, your an expert who can save your client money. You'll have more control over what you charge (I've put my rate up almost every year and have more than doubled what I was charging when I started 8 years ago) and will get more more interesting projects .

Its higher risk because you need to find your own gigs but if you're successful you'll be able to be more selective and will even be turning away work, you'll have no agency bulltulip to deal with and you greatly reduce your chances of being caught by IR35.

If this approach doesn't appeal, then perhaps a return to permie-dom is the way forwards.

Believe me, most of us want to follow your approach but are clueless as to how to go about it.
How does a programmer contractor with over a decade experience in the Investment Banking sector secure a gig without the intermediation of pesky agents. Nigh on impossible in the current market ! Perhaps the only solution is to move to another sector?

Any advice, links etc as to go about the consultancy route will be much appreciated. Thanks

[MrMarkyMark]

Believe me, most of us want to follow your approach but are clueless as to how to go about it.
How does a programmer contractor with over a decade experience in the Investment Banking sector secure a gig without the intermediation of pesky agents. Nigh on impossible in the current market ! Perhaps the only solution is to move to another sector?

Any advice, links etc as to go about the consultancy route will be much appreciated. Thanks

Using your contacts, I have had 3 IB roles this way?

In any case, in IB, its a mute point as they will generally force you to use an internal agency in any case?

[BlasterBates]

[SueEllen]

Believe me, most of us want to follow your approach but are clueless as to how to go about it.
How does a programmer contractor with over a decade experience in the Investment Banking sector secure a gig without the intermediation of pesky agents. Nigh on impossible in the current market ! Perhaps the only solution is to move to another sector?

Any advice, links etc as to go about the consultancy route will be much appreciated. Thanks

The direct contracts I've got have been by mainly networking with people in person. ( Oh and some of the networking events have been sponsored by agencies.) Though some do turn up on job boards but in those incidences the person contacted me not the other way round and the roles where not advertised.

Added to this there have been contractors on this forum who have helpful indicated the way to sign up for government marketplaces - some have been so helpful they have spoon fed everyone with the links.

[MarkT]

I'm trying to work out what the actual financial impacts are from this budget

1 - 1% Class 4 NI increase
2 - The removal of Class 2 NIs
3 - Reduction of the Div Tax fee free allowance by £3k
4 - Reduction in CT by 1%

Anyone smart enough to work out what that would be for someone taking say £300, £400 or £500pd and outside IR35 in the Private Sector?

[Tasslehoff]

It used to be high risk, high yield

In the current model it becomes less and less each year, worth it to be a contractor.

There will come a point where the risk does not equal the reward.

At that point I will welcome my warm cosy desk, holiday, pension and sick pay etc.

Until that point, BILL AND SMILE