Other sectors outside banks halting all contractor renewals

[edison]

I've heard from a good fiend of mine who's contracting at a telco that they too have decided not to renew any contracts after early 2020 whilst they wait for the IR35 picture to become clearer.

Who's going to be next?

[GhostofTarbera]

Just everyone


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[dx4100]

I think any big to blue chip company who engage significant numbers of contractors are going to take the similar approach because as business models they will be far less trusting of lower level management to make the right calls.

Most small to medium size businesses will take a lead from the agencies as they tend to be clueless on average I find. I usually spend time explaining IR35 to them and they get it. I guess the fall of liability might scare some of them but I think a lot are shrewd enough not to be spooked if agencies do their jobs for once.

My current agency has suggested they would rather clients declare everyone outside to reduce the burden on them and increase the clients chances of attracting the best on the market and are advising clients how in reality its quiet simple for everyone to operate outside . No idea where the truth lies but this gives me some hope as I mostly work for smaller to medium companies.

[edison]

Just everyone


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Well, yes, it could be lots of organisations! I was hinting at if anyone knew of other specific examples.

[vwdan]

I'm contracted to a large multi-national and I've had the dreaded invite to the "IR35 Discussion". I don't imagine it's going to be great news, though it's an interesting one because they recently went through a HUGE outsourcing drive and many internal teams only have contractors now

[BlueSharp]

One big line in the sand drawn kicking out anyone who looks like a permie-tractors will happen at all organisations.

Going forward I hope the projects are structured correctly and outside contracts make a reappearance. Otherwise scarce talent roles will force day rates. MSP have already cottoned on to this and are taking outside contractors on in the public sector, the same will happen in the private sector as the cost saving gives them a competitive advantage even if the end client takes on contractors directly inside ir35.

[Paralytic]

I've heard from a good fiend of mine who's contracting at a telco that they too have decided not to renew any contracts after early 2020 whilst they wait for the IR35 picture to become clearer.

I've been saying for a while that this model is generally where we'll end up, especially for larger clients where legal/risk will drive the decision. Why bother with the hassle of IR35 determination when you can just change your engagement model.

Who's going to be next?

Its not really been discussed much here, but RBS is doing the same.

[CheeseSlice]

I wonder if any IR35 tax investigation/liability insurers are creating products for end clients?

Not sure how appealing or cost effective it would be though.

[cojak]

I wonder if any IR35 tax investigation/liability insurers are creating products for end clients?

Not sure how appealing or cost effective it would be though.

The model seems to be pushing the risk and liability down to the contractor.

[sal]

It was exactly the same in 2017 in the Public sector. Then March came and half organisations accepted some risk around having Inside IR35 contractors in uncharted waters over guaranteed risk of collapsing projects costing them millions.

I just don't get it why the private sector is tuliping their pants - If the public sector managed to muddle through the reform going 3rd year now, how hard could it be... It only requires an ounce of determination.