State of the Market

[jamesbrown]

IR35 (in private sector) will not happen in 2021. What's your bet?

The opposite of that.

[nomadd]

IR35 (in private sector) will not happen in 2021. What's your bet?

I was going to say a 1/2 penny. But checking on eBay, it seems they are worth £100 or more. So screw that.

[ensignia]

Even if the private sector IR35 reform is delayed again it probably won't change anything. Virtually all contracts I'm seeing for big org's have already made the switch to PAYE and they won't bother reversing it.

There were a select few big companies who deferred it, but the majority already have a PAYE system in place with PSL Umbrella co's and there would be no benefit for them to scrap it for 12 months.

I'm inside (*spits*) with an IB in Canary Wharf at £650 p/d, the take home is around £360; seems mental compared to the halcyon days of yore

[SussexSeagull]

IR35 (in private sector) will not happen in 2021. What's your bet?

I wouldn't bet on it, but then again I wouldn't bet against it.

[Destiny2]

Yup back to normal 600 a day for everyone

My phones off the hook


Sent from my iPhone using Contractor UK Forum

150 a day in my line of work is considered the norm.

[northernladuk]

150 a day in my line of work is considered the norm.

First line or temping?

[rocktronAMP]

Even if the private sector IR35 reform is delayed again it probably won't change anything. Virtually all contracts I'm seeing for big org's have already made the switch to PAYE and they won't bother reversing it.

There were a select few big companies who deferred it, but the majority already have a PAYE system in place with PSL Umbrella co's and there would be no benefit for them to scrap it for 12 months.

I'm inside (*spits*) with an IB in Canary Wharf at £650 p/d, the take home is around £360; seems mental compared to the halcyon days of yore

What?!

£650 p/d -> £360 p/d.

So basically they taking more than the NI and Apprentice Levy 14% in your PAYE / Umbrella solution

Your current net monthly income is £7,363
If you get caught by IR35, this decreases £1,249 (16%) to £6,113

Your total annual contracting fees are £143,000.
After your expenses of £3,000, your gross earnings are £140,000
Your current net monthly income after taxes is £7,363.

Does investment banking IT have a future at those daily contract rates?
Is the talent going to flee already?
You're better than that.

[nomadd]

Does investment banking IT have a future at those daily contract rates?
Is the talent going to flee already?
You're better than that.

Judging by the number of "I'm desperate and will take anything" posts we've seen on here in the last 12 months, I'm sure IBs will have no problems recruiting contractors at rates significantly below £650. In fact, I've already seen plenty of evidence of IB dev roles at £450-500.

Last IB I worked for had plenty of Indian IT staff (devs, testers, PMs) at rates of £150-300 - and that was way before IR35 and COVID kicked in.

The race to the bottom continues.

[Fraidycat]

What?!

£650 p/d -> £360 p/d.

55% overall take home, is about right for inside IR35 at that rate.

Daylight robbery, and gets even worse the more you earn, you only get to keep about 47% on anything over 650 per day, they steal 53%. Due to the 45% rate + employers NI

[eek]

55% overall take home, is about right for inside IR35 at that rate.

Daylight robbery, and gets even worse the more you earn, you only get to keep about 47% on anything over 650 per day, they steal 53%. Due to the 45% rate + employers NI

Except for the NI (which the employer is paying anyway) it's what an employee pays in tax.

And if you don't like it work less, take more holidays and throw more into a pension.