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Statement of Work (SoW) being outside of IR35?

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    #21
    Originally posted by Fraidycat View Post
    Well there are enough clients offering outside IR35 contracts post April based on what look like standard daily rates.
    Offering??? Really???
    Or agents advertising these roles?

    There's no offer till there's a piece of paper.
    See You Next Tuesday

    Comment


      #22
      Originally posted by eek View Post
      The commercial risk of having 1000 outside IR35 contractors on site is too great.

      The commercial risk of having 10 specialist workers outside IR35 isn't going to be that bad.

      However companies can't do what they've been doing for the past 10 years and use contractors as a replacement for what should be permanent employees.
      I agree with those statements. The end client would be on the hook for the tax, the interest and the penalties, if the revenue ever disagree with the SDS for those 1000 contractor deemed outside IR35 (nah, declared not off-payroll workers).

      Comment


        #23
        Originally posted by Paralytic View Post
        Do you know if any any evidence (or even real expectation) that that will actually happen?

        Yes, most companies want the best contractors, but will take someone adequate if it removes a big risk.
        I think it is speculative.

        However, there is an opening for small companies that qualify as exempt from the pending legislation.

        Small companies need a turnover of less than £10.1 millon, have up to 50 employees or a balance sheet total of £5 million. They must satisfy 2 of the 3 criteria for two consecutive tax years (or will be doing so), if true, then all they need is a SDS saying "we are exempt and therefore this contractor / consultant that we hired (entered a b-2-b relationship) is as well".

        BTW: Small companies must be truly standalone legal entities, so no off-shoots and no tie parental super power firms, e.g. spin off Deutsche Bank / Citigroup are allowed.

        Comment


          #24
          Originally posted by eek View Post
          The commercial risk of having 1000 outside IR35 contractors on site is too great.

          The commercial risk of having 10 specialist workers outside IR35 isn't going to be that bad.

          However companies can't do what they've been doing for the past 10 years and use contractors as a replacement for what should be permanent employees.

          Then be that specialist worker who gets the outside contract.

          There is another option to help get outside IR35 renewals if you don't have specialist skills.

          Which is to provide exceptional value to the client, actually work really hard for the 40 hours a week they pay you. Make yourself a bargain at the 600 a day (or whatever they pay you).

          Most contractors don't provide anywhere near the value that they charge. eg Pathetically low level of code commits.

          Personally i provide so much value and productivity compared to other contractors. I would be good value even at £2000 a day.

          Many contractors (after you see what they actually produce in a year) aren't even really worth £200 a day let alone £2000.

          Price's Laws: a handful of people do most of the work in many situations.

          You want to part of that group.
          Last edited by Fraidycat; 14 January 2021, 15:54.

          Comment


            #25
            Originally posted by Fraidycat View Post
            Then be that specialist worker who gets the outside contract.

            There is another option to help get outside IR35 renewals if you don't have specialist skills.

            Which is to provide exceptional value to the client, actually work really hard for the 40 hours a week they pay you. Make yourself a bargain at the 600 a day (or whatever they pay you).

            Most contractors don't provide anywhere near the value that they charge. eg Pathetically low level of code commits.

            Personally i provide so much value and productivity compared to other contractors. I would be good value even at £2000 a day.

            Many contractors (after you see what they actually produce in a year) aren't even really worth £200 a day let alone £2000.

            Price's Laws: a handful of people do most of the work in many situations.

            You want to part of that group.
            I stoped reading at “really hard work”


            Sent from my iPhone using Contractor UK Forum

            Comment


              #26
              Originally posted by Fraidycat View Post
              This may change as companies find it harder and harder to fill inside IR35 roles while competitors are offering outside roles.
              I don't think this is true at all. As we move towards the April legislation the landscape is changing. Same number of roles offered same number of contractors (broadly speaking) so people are having to take inside. You might argue inside get's a poorer quality of contractor but I don't even think that is true at the moment and certainly won't be after April. The choice has been taken away.

              Add Covid in to it and I think a vast majority of skilled contractors would consider inside roles now so company's won't struggle to fill them and usually won't have to take the bottom end of the market.

              I don't think the landscape is or will be there where an equal number of clients are offering outside to give contractors the choice.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #27
                Originally posted by GhostofTarbera View Post
                I stoped reading at “really hard work”


                Sent from my iPhone using Contractor UK Forum
                and it wouldn't work.

                HMRC will look at the other people doing the exact same job and ask why is that one outside and the other 99 inside.

                Now having found that guy is inside - could you pay this bill for all the other "outside IR35" contractors you weren't paying the correct tax for.
                merely at clientco for the entertainment

                Comment


                  #28
                  Originally posted by Fraidycat View Post
                  Then be that specialist worker who gets the outside contract.

                  There is another option to help get outside IR35 renewals if you don't have specialist skills.

                  Which is to provide exceptional value to the client, actually work really hard for the 40 hours a week they pay you. Make yourself a bargain at the 600 a day (or whatever they pay you).

                  Most contractors don't provide anywhere near the value that they charge. eg Pathetically low level of code commits.

                  Personally i provide so much value and productivity compared to other contractors. I would be good value even at £2000 a day.

                  Many contractors (after you see what they actually produce in a year) aren't even really worth £200 a day let alone £2000.

                  Price's Laws: a handful of people do most of the work in many situations.

                  You want to part of that group.
                  If there was a point there you spoilt it by sounding like a pompus ass.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #29
                    Arghhh. I think I've given Fraidy's inane ramblings some +ve rather than -ve rep. Can someone re-dress the balance for me please.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      #30
                      Originally posted by northernladuk View Post
                      Arghhh. I think I've given Fraidy's inane ramblings some +ve rather than -ve rep. Can someone re-dress the balance for me please.
                      Sorted.
                      merely at clientco for the entertainment

                      Comment

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