IR35 and day rate

[MattZani]

Just based on money (so, leaving out all the other factors and implications of working inside vs outside IR35) how much would you bump up your day rate for a contract deemed inside IR35?

I'm noticing contracts advertised with higher rate because inside IR35 so just wondering if you have 2 rates: one for outside and one for inside

Thanks

[northernladuk]

Around 25 to 30%

[jamesbrown]

No amount

Wouldn't take one, on principle, because I don't want to deal with the crap that disguised employees deal with (and I also wouldn't take one that was nominally inside but with working practices that contradicted that, again on principle).

But, to answer your question directly, probably 30-35%.

[Old Greg]

No amount

Wouldn't take one, on principle, because I don't want to deal with the crap that disguised employees deal with (and I also wouldn't take one that was nominally inside but with working practices that contradicted that, again on principle).

But, to answer your question directly, probably 30-35%.

At what % increase would your principles fade away?

[man]

The actual equivalent rate varies based on a number of factors....

Finger in the air estimate? 20-25%.

[DeludedKitten]

Depends on the location. If I have significant travel expenses that can no longer go through the company, I suspect that the rate increase would need to be 50%+ which means that I wouldn't even waste time looking at the role.

[billybiro]

Wouldn't take one, on principle, because I don't want to deal with the crap that disguised employees deal with (and I also wouldn't take one that was nominally inside but with working practices that contradicted that, again on principle).

Hope you enjoy all that time on the bench after next April.

[jamesbrown]

Hope you enjoy all that time on the bench after next April.

Bench sounds great

[simes]

At some point after the Private Sector reforms, the market will undoubtedly even out between the current Public and Private sectors and the current aim for Private will thus dissipate.

If then the ability, as yet unknown, for contractors to remain outside IR35 is not strong, I would hazard a guess the day rates will revert to what they are now, and possibly contractors will just have to suck it up.

Reason for saying this is, no matter ones experience as a contractor, there will always be a newer, younger bod willing to take up the mantle.

[malvolio]

At some point after the Private Sector reforms, the market will undoubtedly even out between the current Public and Private sectors and the current aim for Private will thus dissipate.

If then the ability, as yet unknown, for contractors to remain outside IR35 is not strong, I would hazard a guess the day rates will revert to what they are now, and possibly contractors will just have to suck it up.

Reason for saying this is, no matter ones experience as a contractor, there will always be a newer, younger bod willing to take up the mantle.

You can still be outside IR35, the law itself hasn't changed. However you will have to have the balls to challenge your "employer's" decision on your status, probably at an ET where you will be claiming holiday and pension rights á la Susan Winchester or your IR35 status at the commissioners. If enough people start that process the clients will soon look for a better solution.

What we ought to be doing is teaching clients that the 2020 changes do not mean they have to put everyone inside IR35 out of fear of the taxman, but recruit their contractors on a proper B2B basis so there is no place for IR35 to apply. If they do realise that the world will keep on turning.

It's that education that is missing. The agencies are holding seminars left, right and centre - and, naturally enough, selling the wrong answer to protect their own business model.