Barclays forcing all contractors to go PAYE by February 2020

[edison]

I can't seem to be able to insert the link properly but just seen a story that Barclays have announced they will no longer be engaging contractors other than via PAYE after Feb 2020. It was posted by Dave Chaplin who has been vigorously leading a campaign against the proposed IR35 changes in 2020.

After HSBC, this approach seems to be gathering momentum, in banks at least.

[ladymuck]

Good to see Barclays realise that the way they engage with contractors is a lie. There are very few true freelancers there. It's all hidden under MSP contracts with the likes of the hideous HCL.

Their technology refresh projects are a joke - they are perpetual, never ending affairs that simply ramp up/ramp down as and when budgets get approved with the same people there year after year.

[wattaj]

I can't seem to be able to insert the link properly but just seen a story that Barclays have announced they will no longer be engaging contractors other than via PAYE after Feb 2020. It was posted by Dave Chaplin who has been vigorously leading a campaign against the proposed IR35 changes in 2020.

After HSBC, this approach seems to be gathering momentum, in banks at least.

Two words: Resource Solutions.

[Poker space]

from linkedin

Imgur: The magic of the Internet

[rlpb13]

The comms says "Barclays will engage contingent workers on a PAYE basis only for new or renewed contracts". That sounds slightly less heavy than the HSBC "go-perm or quit". The question remains as to what kind of salaries they're going to offer via PAYE and how these will compare to current day rates.

[Peoplesoft bloke]

The comms says "Barclays will engage contingent workers on a PAYE basis only for new or renewed contracts". That sounds slightly less heavy than the HSBC "go-perm or quit". The question remains as to what kind of salaries they're going to offer via PAYE and how these will compare to current day rates.

My guess is rubbish salaries - and then all the roles will be offshored when they can't fill them.

As a contractor, my company can fund my occasional very expensive trips to clientco in London. As a permie, I'd need a big salary to be able to afford them - so clientco will send the work elsewhere.

[PCTNN]

After HSBC, this approach seems to be gathering momentum, in banks at least.

Is there a sticky thread (and if not, can we create one) with updates from companies on how they're going to deal with IR35 changes?

Was thinking list of companies, grouped by industry

[Hobosapien]

As a contractor, my company can fund my occasional very expensive trips to clientco in London. As a permie, I'd need a big salary to be able to afford them - so clientco will send the work elsewhere.

That's the unintended consequence of forcing contractors inside IR35 (however they achieve that end goal), they look at the tax issue but then overlook that travel expenses are no longer claimable (unless the client covers it one way or another), so there will be fewer contractors able to make the figures add up by working away from home on an inside IR35 contract without a rate uplift to compensate.

Clients using contractors to fill what would otherwise be employee roles may hope they get ex-contractors to fill those vacancies but clients looking to use contractors as temporary resource for projects may find they need to pay more, especially if not located with plenty of resource within commutable distance.

Hopefully the risk/cost analysis means clients see the easy way of avoiding outside IR35 contracts at the cost of offsetting the additional tax and expenses as worth it for skills that are in short supply and they only need them for a short time anyway. Though how that sits with the 'skills shortage' visa situation where people from places with an overall lower cost of living can come and fill the gap temporarily is the obvious end game.

[sal]

Good to see Barclays realise that the way they engage with contractors is a lie. There are very few true freelancers there. It's all hidden under MSP contracts with the likes of the hideous HCL.

Their technology refresh projects are a joke - they are perpetual, never ending affairs that simply ramp up/ramp down as and when budgets get approved with the same people there year after year.

Too true. The project I spend 12m got de-scoped to the ground, like 70-80% of the work removed, even though it was achievable for our BU, just because several other BUs were lagging. At the end of the year the project was branded a success despite of the original work still pending. First working day of January a new project launched with a brand new name and the original scope of the old project...

[SteelyDan]

I can't seem to be able to insert the link properly but just seen a story that Barclays have announced they will no longer be engaging contractors other than via PAYE after Feb 2020. It was posted by Dave Chaplin who has been vigorously leading a campaign against the proposed IR35 changes in 2020.

After HSBC, this approach seems to be gathering momentum, in banks at least.

Link: Barclays contractors hit as bank insists PAYE only | eFinancialCareers