State of the Market

[tvr450]

Can I ask an impertinent question?

Will the tax you pay from your perm role equate to the tax you paid while as a contractor?

To be honest I don't know, but as a limited company is more efficient than PAYE, I guess I will pay more % tax, however as I am earning significantly less money than I did as a contractor the actual tax to pay will be far less.

[simes]

To be honest I don't know, but as a limited company is more efficient than PAYE, I guess I will pay more % tax, however as I am earning significantly less money than I did as a contractor the actual tax to pay will be far less.

Many thanks for answering.

What I was inferring from my question was a worst case scenario; if all contractors go permanent;

1. HMRC won't actually earn themselves Any more tax.
2. All HMRC will have achieved is to wreck a perfectly working mobile workforce model.

(And since elsewhere, Londonmanc has today deemed that every post should contain a question, can I ask what colour your car is?)

[uk contractor]

IR35 is aimed more at people like Eamon Holmes & Footballers earning million rather than IT contractors! Just a shame HMRC refuse to treat IT contractors differently!
Eamonn Holmes faces a GBP250k bill after losing his tax case | Daily Mail Online

[wattaj]

IR35 is aimed more at people like Eamon Holmes & Footballers earning million rather than IT contractors! Just a shame HMCR refuse to treat IT contractors differently!
Eamonn Holmes faces a GBP250k bill after losing his tax case | Daily Mail Online

One victim at £250k, or 10s of thousands of victims at £10K each?

HMRC know where their bread's buttered.

[eek]

One victim at £250k, or 10s of thousands of victims at £10K each?

HMRC know where their bread's buttered.

HMRC know that chasing your typical IT contractor wasn't worth it - that's why they've changed the rules.

[wattaj]

HMRC know that chasing your typical IT contractor wasn't worth it - that's why they've changed the rules.

It's the same catch, just a different net.

[NeedTheSunshine]

IR35 is aimed more at people like Eamon Holmes & Footballers earning million rather than IT contractors! Just a shame HMRC refuse to treat IT contractors differently!
Eamonn Holmes faces a GBP250k bill after losing his tax case | Daily Mail Online

That's the PR that HMRC would like everyone to believe. High earning TV Presenters and Footballers who have avoided tax won't get much public sympathy. (And neither will IT contractors, or any other perceived tax avoiders who aren't "paying their fair share", but IT contractors etc aren't the headline grabbing stories) So public perception of Tax Avoiders = millionaires

[BigDataPro]

That's the PR that HMRC would like everyone to believe. High earning TV Presenters and Footballers who have avoided tax won't get much public sympathy. (And neither will IT contractors, or any other perceived tax avoiders who aren't "paying their fair share", but IT contractors etc aren't the headline grabbing stories) So public perception of Tax Avoiders = millionaires

Very well said. Perfect

[Lilibet]

Hi from the bench

Completed my last project on Friday - after working on back to back contracts for the last 12 months.

Feeling energised but unsure what to do next - pretty much like most of us I reckon - due to the infamous IR35. Although my expertise lies firmly outside of IR35 the blanket decisions by clients does have an effect....

I've had 4 interviews already this week, mixed of perm and FTC. I also work on a few other leads.

Warchest is fairly healthy so can burn about a year - however that's not what I want to do! plus getting bored when out of work.

I'm London based and its a nice day (dry)

Anyone else around?

[LondonManc]

Completed my last project on Friday - after working on back to back contracts for the last 12 months.

Feeling energised but unsure what to do next - pretty much like most of us I reckon - due to the infamous IR35. Although my expertise lies firmly outside of IR35 the blanket decisions by clients does have an effect....

I've had 4 interviews already this week, mixed of perm and FTC. I also work on a few other leads.

Warchest is fairly healthy so can burn about a year - however that's not what I want to do! plus getting bored when out of work.

I'm London based and its a nice day (dry)

Anyone else around?

Why burn your warchest when you can take an FTC to ride out the shizstorm? Plus if that's the future direction of contracting, you get a taste of it early on to see whether you want it or you head for a consultancy as a perm or opt for Plan X?