Families 600 quid worse off due to Brexit

[Bean]

Good when the agency offers you a contract inside IR35 they you won't feel hard done by, you realise that you're paying your just deserts

They are free to 'offer' whatever they want.

Let me reiterate an earlier point - not all contracts are inside IR35.

Has it been a while since you last contracted?

[sasguru]

... after Philip Hammond screws contractors with new IR35 rules, Labour will finish off whatever minor advantage they have with some new eye wateringly high taxes.

Let me reiterate an earlier point - not all contracts are inside IR35.

Only an idiot like you would assume that everything will continue as it is right now (not that the current system is any good).
25 years of contracting with squeeze after squeeze tells me there'll be more and it is entirely possible, and even plausible, that IR35 might become moot because the PSC model may become untenable for ALL contractors.

[BlasterBates]

They are free to 'offer' whatever they want.

Let me reiterate an earlier point - not all contracts are inside IR35.

Has it been a while since you last contracted?

No but the whole idea of Hammond's tax rises are to do just that, raise taxes not introduce new toothless rules.

Currently contractors can jump from the public sector to the private sector. When the new rules are introduced into the private sector, there will be no convenient hiding place and it will inevitably become difficult to simply hop over to the EU. In effect UK contractors will be "imprisoned" by HMRC's new rules.

Contractors need to plan for lower after tax earnings post Brexit.

[Bean]

Only an idiot like you would assume that everything will continue as it is right now (not that the current system is any good).
25 years of contracting with squeeze after squeeze tells me there'll be more and it is entirely possible, and even plausible, that IR35 might become moot because the PSC model may become untenable for ALL contractors.

Call me an idiot and then use words like 'may', 'might', 'possible' & 'plausible'

Yes, and it 'might' not happen in any meaningful way either, you freekin genius

[Bean]

No but the whole idea of Hammond's tax rises are to do just that, raise taxes not introduce new toothless rules.

Currently contractors can jump from the public sector to the private sector. When the new rules are introduced into the private sector, there will be no convenient hiding place and it will inevitably become difficult to simply hop over to the EU. In effect UK contractors will be "imprisoned" by HMRC's new rules.

Contractors need to plan for lower after tax earnings post Brexit.

You're not aware of some government agencies raising their rates to attract some contractors to offset IR35?
You're not aware that (according to the press) the deciding factor is left with the client, who could state outside IR35?
You're not aware that there are factors which dictate whether IR35 applies to a contract?
You're not aware that many clients operate outside of IR35?
You're not aware these 'changes' haven't been confirmed and/or implemented yet (so nobody truly knows yet)?

Hmmmmm....

[BlasterBates]

You're not aware of some government agencies raising their rates to attract some contractors to offset IR35?
You're not aware that (according to the press) the deciding factor is left with the client, who could state outside IR35?
You're not aware that there are factors which dictate whether IR35 applies to a contract?
You're not aware that many clients operate outside of IR35?
You're not aware these 'changes' haven't been confirmed and/or implemented yet (so nobody truly knows yet)?

Hmmmmm....

Contractors working for public sector see income slashed by up to 30pc in wake of tax crackdown

You need to budget for a 30% cut in post tax earnings, sure some agencies have compensated with a 5 or 6% rate rise, but that's the best you can expect.

[Bean]

Contractors working for public sector see income slashed by up to 30pc in wake of tax crackdown

You need to budget for a 30% cut in post tax earnings, sure some agencies have compensated with a 5 or 6% rate rise, but that's the best you can expect.

Not what these guys said..... 43% of 45% (you'll have to read the article to understand), saw rises in excess of 15%....
https://www.contractorcalculator.co....7210_news.aspx

[BlasterBates]

Not what these guys said..... 43% of 45% (you'll have to read the article to understand), saw rises in excess of 15%....
https://www.contractorcalculator.co....7210_news.aspx

Yes but a 15% pre tax rise still means a post tax 20% cut and that is the best you can expect, so realistically you can expect on average a 25% cut. If both the private and public sector are treated in the same way there will be less pressure on companies to compensate.

[sasguru]

Call me an idiot and then use words like 'may', 'might', 'possible' & 'plausible'

Yes, and it 'might' not happen in any meaningful way either, you freekin genius

Maybe that's why I'm a millionaire and you're not.
I always plan for the worst.
Anyone who thinks contracting, even in the private sector, is going to continue as it is has got to be either naive or stupid.

HTH, BIDI.

[Bean]

Yes but a 15% pre tax rise still means a post tax 20% cut and that is the best you can expect, so realistically you can expect on average a 25% cut. If both the private and public sector are treated in the same way there will be less pressure on companies to compensate.

15% wasn't the ceiling %, the clue was the words 'in excess'.

You think a bank will hesitate to offer whatever a skilled up contractor wants if their project is ballsed up and they need them there?