Post April impact on recruitment agents

[Hapax]

I slightly surprised that there's been so little discussion about the impact of the IR35 changes on rec. cons.

It's clear that many agencies, particularly those targetting financial services, face an existential threat after April. Since many contractors on this forum deal through these intermediaries I would have thought that their financial stability would be more of a concern than it appears to be.

[BR14]

WGAF?

[VirtualMonkey]

maybe we should start calling them and asking for 'references' from previous clients on th eoff chance we might be using them for a contract

[Lance]

I slightly surprised that there's been so little discussion about the impact of the IR35 changes on rec. cons.

It's clear that many agencies, particularly those targetting financial services, face an existential threat after April. Since many contractors on this forum deal through these intermediaries I would have thought that their financial stability would be more of a concern than it appears to be.

Why?
They still need to find people. And they'll still get their cut for doing that.
There'll be some changes to the way they operate but it will likely be greater costs in the payroll side and reduced costs in the legal side.
And do you not think their extra costs will be factored into the new contracts being issued over the next 2 months?

[Peoplesoft bloke]

Their model (with a few notable exceptions) revolves around hair gel and knowing zero about what we do or how we do it.

That won't change.

[thebone]

No sympathy at all. We've all made them rich and generally they make it harder to find work by preventing you getting nearer to it. Get them on Ark B as soon as possible.

[WTFH]

It's clear that many agencies, particularly those targetting financial services, face an existential threat after April.

Agents will never admit they have a problem, that makes them look weak. So you'll see various agents coming out with ideas on how to get round things.

Also, the banking sector are still going to need permi-tractors, like they always have, and they'll still use agents to supply them, there'll just be other steps to negotiate, and I'm fairly certain they won't hit the agent's margin.

[northernladuk]

I've spoken to many agents this last few months and many of them aren't happy with this and it's making things a lot harder for them..
As for discussing it on here. Who cares?

[Eirikur]

I slightly surprised that there's been so little discussion about the impact of the IR35 changes on rec. cons.

It's clear that many agencies, particularly those targetting financial services, face an existential threat after April. Since many contractors on this forum deal through these intermediaries I would have thought that their financial stability would be more of a concern than it appears to be.

Why? Companies still need contractors and/or permies, not much is changing for them, some admin stuff maybe that's all.

[sal]

They just need to adapt, Inside/outside IR35 makes no difference to their cut. If anything it's getting better for some of the larger ones that are starting/expanding Umbrella capabilities essentially double dipping.

The roles that go perm also pay well for them AFAIK the going rate is 6m salary. So that's 25-30k upfront for a role that pays about £350-400pd contract. At a moderate 10% cut that's 3+ years of getting a cut from a contractor in one go.

If anyone is going to be affected it will be the Accounting firms with swathes of companies getting closed or "shelved"