Legitimacy of this model post April

[CryingSheep]

The end client can be assessed as being the ultimate entity in the chain asking for a provision of labour.

If company A has a development need and asks company B to provide labour resource to facilitate the delivery of the whole project, or areas thereof then company A is the end client.

If, however company A outsources the delivery of the project, or areas thereof to company B AND it is up to company B to decide on resource levels and source that labour needed then company B should be considered to be the end client.

In the second scenario, company A is the consumer and company B is producing the product that company A consumes.

If that is the case how IR35 is gonna work for MOST consultancies!? All the ones I know (and I work in a few in the pass) they all provide labour resources and not a 'product'! Know a couple that take over a all project and deliver it (and this sounds more like your second example) but I'm afraid this is the rare exception...

[Lance]

If that is the case how IR35 is gonna work for MOST consultancies!? All the ones I know (and I work in a few in the pass) they all provide labour resources and not a 'product'! Know a couple that take over a all project and deliver it (and this sounds more like your second example) but I'm afraid this is the rare exception...

fixed price, statement of work, paid on completion of milestones only, no named individuals in the contract or SOW - that's how it can (and will) work for consultancies. Nothing to stop anybody doing this except the general lack of commercial skills amongst amongst most contractors I've met.

[CryingSheep]

fixed price, statement of work, paid on completion of milestones only, no named individuals in the contract or SOW - that's how it can (and will) work for consultancies. Nothing to stop anybody doing this except the general lack of commercial skills amongst amongst most contractors I've met.

Just a bit confused, why I haven't heard that post April will be a very challenging times for consultancies, as like I said most I know have people on client site for daily fix rates!

[Lance]

Just a bit confused, why I haven't heard that post April will be a very challenging times for consultancies, as like I said most I know have people on client site for daily fix rates!

it depends....
Sometimes I've worked for consultancies where they just body shop you in.
Sometimes they are delivering a defined scope.

The consulatncies have the ear of the HR, and legal, departments. So can help them make the 'correct' determination.

I don't know how it's going to pan out. It's not even in a bill yet, let alone been passed as an act of law.

[MrC]

The end client can be assessed as being the ultimate entity in the chain asking for a provision of labour.

If company A has a development need and asks company B to provide labour resource to facilitate the delivery of the whole project, or areas thereof then company A is the end client.

If, however company A outsources the delivery of the project, or areas thereof to company B AND it is up to company B to decide on resource levels and source that labour needed then company B should be considered to be the end client.

In the second scenario, company A is the consumer and company B is producing the product that company A consumes.

Thanks for clarifying so well Patrick. as I suspected it's not as straightforward as some of the lesser folk on this forum seemed to think.