State of the Market

[eek]

We not been in this place before. Yes, the contracting market has seen those bear markets before with the old world contracting setup but this is a different ball-game with a hostile Government that has weaponised HMRC and demonised the sector.

In 2023 it is simply an easier sell to get a Deliotte Digital drone in and not have to deal with the hassle of a contractor.

Is it? My end client is very much - no consultancies unless absolutely essential..

[Bluenose]

Inside bigger customers I have dealt with yes, its a thing. Have a look at Deloitte Digital's revenue graph.

And that's the thing with global competitiveness of British businesses and public-sector organisations, its anti-competitive to be paying a 65%+ mark-up on temp. resources simply to avoid compliance/legal issues with HMRC. HMRC might get their pound of flesh from the freelancers but the cost to competitiveness is not calculatable and therefore, remains hidden. Businesses just seem to be swallowing it for now, I assume because its written off as opex.

Would'nt it be ironic that the people paying for these enormous rate uplifts were HMRC themselves through the corporate investment tax relief ? and from various companies not running a profit as they write it all off ?

[eek]

Would'nt it be ironic that the people paying for these enormous rate uplifts were HMRC themselves through the corporate investment tax relief ? and from various companies not running a profit as they write it all off ?

IR35 is all about National Insurance (and Employer NI at that).

Corporation tax is an entirely different issue..

Meanwhile I'll take the money this client is paying me on top of what would be the outside rate and throw it into my pension pot.

[andromedan]

My Outside IR35 contract ends in early June. I did put my CV on a few job boards last week, but so far, almost 0 calls for Senior frontend/React engagements. I just wanted to start early and check the market but so far nothing special, but hey that's only me.

[agentzero]

Healthy market this last month. Lots of roles - majority I'm getting calls about are Outside.

It would be interesting to do a poll and see who's on an outside contract, inside, currently looking for a contract. I have the impression many people have migrated to inside work but a majority aren't real contractors and should have always been inside IR35. A few inside IR35 people are real contractors and just doing the inside contract to make ends meet.

I'm on an outside contract now and have never worked inside before. My role is such that this is feasible, however Program Managers almost always seem to be inside IR35, due to the type of role. I suspect PerfectStorm's work and mine are mainly outside IR35, due to the knowledge required to complete the role. A manager is almost always inside IR35 and so if that's a contractor's ideal role then they might as well go permie.

[oliverson]

Really?

We've been here before in 2001, 2008 and 2020...

I got clouted by all three but pleased to say I'm back at the top again.

"Look

[eek]

It would be interesting to do a poll and see who's on an outside contract, inside, currently looking for a contract. I have the impression many people have migrated to inside work but a majority aren't real contractors and should have always been inside IR35. A few inside IR35 people are real contractors and just doing the inside contract to make ends meet.

I'm on an outside contract now and have never worked inside before. My role is such that this is feasible, however Program Managers almost always seem to be inside IR35, due to the type of role. I suspect PerfectStorm's work and mine are mainly outside IR35, due to the knowledge required to complete the role. A manager is almost always inside IR35 and so if that's a contractor's ideal role then they might as well go permie.

None of the above - I'm doing this contract because it's inside but 100% wfh and pays way more than the outside work I was being offered.

And given the choice of a well paid inside role (with no expenses / costs) or an outside role (with clawback risk) I know what one I would take.

It's worth saying that the people I know who fully understand IR35 are all avoiding chapter 10 outside IR35 contracts.

[eek]

In other news - someone who knows the recruitment market is saying that Contract work is doing way better than permanent recruitment

[Bluenose]

In other news - someone who knows the recruitment market is saying that Contract work is doing way better than permanent recruitment

Do they work in HR at Deliveroo?

No scratch that, contracts desk at eTeam.

[edison]

It would be interesting to do a poll and see who's on an outside contract, inside, currently looking for a contract. I have the impression many people have migrated to inside work but a majority aren't real contractors and should have always been inside IR35. A few inside IR35 people are real contractors and just doing the inside contract to make ends meet.

I'm on an outside contract now and have never worked inside before. My role is such that this is feasible, however Program Managers almost always seem to be inside IR35, due to the type of role. I suspect PerfectStorm's work and mine are mainly outside IR35, due to the knowledge required to complete the role. A manager is almost always inside IR35 and so if that's a contractor's ideal role then they might as well go permie.

Not all managers want to be perms. There's a fairly big but specialised market for interim managers. Typically these are very experienced people in their 40s and older. I've done multiple interim roles like Head of IT Strategy and Head of IT for around 12-15 months.