State of the Market

[ladymuck]

The thing is many contractors are morally opposed to paying more tax even they are netting more. They still can't get out of the mindset that the extra tax should somehow be going in their pocket.

Many but not all. Lots of the many took part in tax avoidance schemes.

I once worked out that my total taxation via my Ltd Co was just 2k a year less than PAYE. A small benefit that I feel is a justifiable exchange for not requiring all the extra gubbins an employer has to provide. For me, the main benefit is being able to decide when I get paid, so I can tweak my income according to need and only pay tax when I draw it out the company.

I have never had any issue with paying tax. What I dislike is being taxed like an employee, who never has to worry about ErNI and AL deductions when working out their take home pay, yet getting none of the rights and protections afforded to an employee.

Until the contradictory treatment of off payroll workers is resolved, there is inherent unfairness built into the legislation, especially for those who are more vulnerable and are being exploited by dodgy clients/employers.

All I can see with the ErNI increase is more perm positions being moved to off payroll roles via umbrellas. HMG / HMRC won't care because they're still getting the tax income but the employee will be shafted.

[Sub]

All I can see with the ErNI increase is more perm positions being moved to off payroll roles via umbrellas. HMG / HMRC won't care because they're still getting the tax income but the employee will be shafted.

That is very likely to happen (while I think the tax is not biggest driver here if compared to providing employment rights / combat unionisation). So if new govt is serious about their attempt to improve situation for workers then curbing use /ban of umbrellas is a must. If ban seems too heavy to begin with, something like limiting engagement between particular worker and particular end-client via umbrella to 3 months in every 12 consecutive months could be a good start.

[Bluenose]

It's not that bad really, like the poster said before you just pay more tax which is I guess exactly what the government want.

It depends on what floats your boat. I have to make a stand for the contractor way of life because that's what this forum is (mostly) about.

A good mate of mine has had a 3 day per week in the office mandate issued after 12 years of 100% permie remote work.

As a contractor I just negotiate a few days in the office per month and stay well away from the office and the UK. If anyone tried to change that, I walk.

99% remote and paying <20% income tax with SPF25 is what you should do once this shower announces their latest money grab but if you want to go back to doing the opposite and get rinsed out for 52%>total deductions and office life - well, that is what freedom of choice is all about.

[SussexSeagull]

Some contractors not wanting to pay more tax then they have to is hardly unique to contractors or (essentially) self employed people!

The problem for me is the financial premium for the uncertainty of contracting work has decreased over the last few years through a combination of changes to taxes, being assessed as Inside IR35 and rates tanking. On a macro level I don't think the contracting industry (or at least the IT part I am in) is sustainable at the moment.

I genuinely enjoy the contracting professional lifestyle where you can avoid internal politics and (in theory at least) always be where the action is but with gaps between contracts it it'a getting to the stage a permanent job might be better financially, plus I would get things like paid holidays.

[SchumiStars]

It doesn't really matter what anyone likes or doesn't like. The market is deader than dead. There does not seem to be any jobs either perm or contracts.

I have another 4 friends in the same boat as me and we are all not liking what is happening ATM.

[coolhandluke]

It doesn't really matter what anyone likes or doesn't like. The market is deader than dead. There does not seem to be any jobs either perm or contracts.

I have another 4 friends in the same boat as me and we are all not liking what is happening ATM.

Exactly this, the Dev contract market is dead. I'm not sure if it will ever come back...

[SussexSeagull]

The whole 'acting like a proper business' thing isn't going to save many one man bands and those with highly niche skills who can practically dictate on what terms they are engaged are few and far between and won't be able to sustain the sector. If contractors exit to permanent jobs, retirement, move abroad, etc. then it will cease to be an option for clients.

[squarepeg]

The whole 'acting like a proper business' thing isn't going to save many one man bands and those with highly niche skills who can practically dictate on what terms they are engaged are few and far between and won't be able to sustain the sector. If contractors exit to permanent jobs, retirement, move abroad, etc. then it will cease to be an option for clients.

Yes, we have to adapt fast, because it is a matter of survival for many, but clients have yet to realise that this shortage of skills and talent is coming. AI won't help them neither will agencies or consultancies. Contractors used to fill in the gaps for startups, but that's going away so it will become more expensive to get a startup going. Even large orgs / government benefited from contractor force to deliver time-constrained projects. Some projects started as almost exclusively contractor team only to be transitioned to perm-only once the switch from delivery to maintenance as made. Lesser discussed fact is that Contracting used to keep people made redundant off the benefits, because they could resell their skills/time. Oh, well... its been fun while it lasted.

[Fraidycat]

I'm not sure if it will ever come back...

Still to early to say. We are 28 months into this downturn for contractors. Previous downturns (early 90s and early 2000s) have lasted 30 to 36 month . I will worry when we hit the 36 month mark and things still haven't markedly improved...

Tech sector redundancies set a new low this month (although the month isn't quite over yet).

Trump looks set to win in the US.

UK budget will be done this week.

Just need interest rates to fall below 4%. Don't even need to go all the way back to 0%. And we will back to the races sometime in 2025.

[Cookielove]

It depends on what floats your boat. I have to make a stand for the contractor way of life because that's what this forum is (mostly) about.

A good mate of mine has had a 3 day per week in the office mandate issued after 12 years of 100% permie remote work.

As a contractor I just negotiate a few days in the office per month and stay well away from the office and the UK. If anyone tried to change that, I walk.

99% remote and paying <20% income tax with SPF25 is what you should do once this shower announces their latest money grab but if you want to go back to doing the opposite and get rinsed out for 52%>total deductions and office life - well, that is what freedom of choice is all about.

Where are you finding these jobs: 99% remote, <20% tax and sunning yourself??

There are no jobs at moment to be had perm or contract....never mind with these specs...

Worrying trend is the push back to the office more and more places saying 2/3 days ....one friend of mine has been told 4 days in the office...time wasted and cost to travel all adds up...

Feel like emigrating to be honest...quiet life in the sun maybe sooner than planned.