Will contract rates increase to pass dividend tax increase to clients?

[javadude]

So will contract rates start to drift up from April as contractors push the increase in dividend tax onto clients?

I'm looking for a contract now so trying to factor the increase into the rate I'm asking for but sense I may be ahead of the curve on this.

[SlipTheJab]

So will contract rates start to drift up from April as contractors push the increase in dividend tax onto clients?

I'm looking for a contract now so trying to factor the increase into the rate I'm asking for but sense I may be ahead of the curve on this.

[BrilloPad]

Did you ask your accountant?

However, they will give you the same response you will get here. No.

HTH. BISDI.

[jamesbrown]

ahead of the curve

That's a polite way of putting it

[northernladuk]

Are you going to put your rates up? You are your own company making it's own business decisions and not one of those horrible tickbox contractors that doesn't really understand anything are you not?

[northernladuk]

I'm looking for a contract now so trying to factor the increase into the rate I'm asking for but sense I may be ahead of the curve on this.

You know how much extra it is going to cost your business do you?

[GB9]

The divi increase is the government telling us that we must pay more personal tax. That's not the client's problem.

The one issue I have raised whilst looking for new roles is whether or not it genuinely falls within ir35. That is a client decision and for an inside role I will charge more. If they don't like that then I move on.

[NotAllThere]

Rates will only ever go up if
a) The work cannot be outsourced
and
b) There are not enough permies
and
c) There are not enough contractors
and
d) The work must be done

[Felix22]

Rates are dependent on supply and demand.
Clients have no interest in contractor overheads/taxation issues, they just want to get a decent job done for the most competitive cost.

Even a highly skilled niche contractor is only worth what the client is willing to pay in current market conditions...

[psychocandy]

I would agree. At the moment, the clients attitude is going to be that you're personal taxation is not their problem.

And you're not going to get a huge amount of sympathy off the client for what a lot think is an expensive resource anyway.

At the moment, also, a lot of clients have got budgets sorted for the next few months maybe. So they're not going to change all that because a contractor is a few quid worse off.

Its only ever going to change when it begins to hurt clients. When contractors start turning down extensions because of this for whatever reason (going back to perm maybe?). Only then - and its going to take a long time - will rates begin to creep up I think.