IR35 within private sector?

[user3284]

If IR35 rules do apply within the private sector from next April, what would be the main consequences for a contractor in relation to rates or running as a ltd company?

Would all contracts have to be run under an umbrella? and if so, would it mean contract rates would go up to compensate for the extra taxes?

And would the net pay be closer to a permanent employee without permanent benefits?

Any other things to consider?

[MrMarkyMark]

If IR35 rules do apply within the private sector from next April, what would be the main consequences for a contractor in relation to rates or running as a ltd company?

Would all contracts have to be run under an umbrella? and if so, would it mean contract rates would go up to compensate for the extra taxes?

And would the net pay be closer to a permanent employee without permanent benefits?

[TheFaQQer]

If IR35 rules do apply within the private sector from next April, what would be the main consequences for a contractor in relation to rates or running as a ltd company?

Would all contracts have to be run under an umbrella? and if so, would it mean contract rates would go up to compensate for the extra taxes?

And would the net pay be closer to a permanent employee without permanent benefits?

The intermediaries legislation always applies, regardless of sector. You should choose the best operating mechanism as appropriate, and negotiate your rates accordingly.

[malvolio]

Is it worth mentioning that IR35 already applies to the private sector? And if you're really worried about it then it's probably because you know you should already be paying up under it.

No, thought not...

[Numbermill]

No sign that it will be ported to the Private Sector next April, but genuinely no-one knows.

All we can do is look at the Public Sector experience and take that as a benchmark. On that basis:

• "Reasonable Care" section will be ignored by organisations that want to keep things simple at their end

• Collective action by contractors can force an organisation to follow "Reasonable Care"
  in some cases

• Agencies will vary hugely in their appetite for negotiating with their clients

• We'll be really busy arguing with companies over IR35 status (hopefully a lot easier than negotiating with the Public Sector has been)

• Vast numbers of contractors will be ported to Umbrella models

• Some rates will be increased to compensate but YMMV

Rob@Numbermill

[SuperZ]

The intermediaries legislation always applies, regardless of sector. You should choose the best operating mechanism as appropriate, and negotiate your rates accordingly.

Won't work. Unless the permitractors bugger off back to permiedom contracting is destined to become filled by peasants (joking). There are far too many out there who will take IR35 sideways without gobbing off about the rubbish rates that will continue to go with it. Just recently I had an ex-perm ask if his £10,000 PA more than his last perm job was good? I just said "yeah, great".

Will be retiring if it happens probably,unless rates do jump massively. Even so, itll be too much like being perm to me. Watching the pennies working away wont appeal.