How much "reduction" in earnings did the April changes create

[VectraMan]

Regardless, however a contractor manages his tax is of no concern of the "employer".

[iphigenie]

I agree - technically it shouldn't be my problem, but if I lose a contractor just because of it and I have to scramble for my project not to get hurt, then it becomes my problem.

Still, glad that the consensus so far is that indeed my employer is not the one who should have to foot the bill.

The recruitment agency that provided several of the contractors is Computer People and i am not impressed (they even lied to my face about several things, which is never good. Not using them again, thats for sure, and will try recruiting via forums and web/paper next time).

All the contractors provided were sent by CP to Giant - whose reputation is less than stellar. My advice is going to be sack the umbrella and see what a real one can do for you, or better yet get a good accountant and use the limited company you have...

PS: I am amazed to see that another one of my contractors has just posted a rant about Giant and them messing up the tax code. I will check with the other one if this is also part of his problem. How can you mess up a tax code, though, I wonder. I am a 2 man band and I have learned enough to run a payroll system properly!

PPS: to the person who posted the first response, I am afraid to say that this here company does not fall under corporation tax so is hit like most of us contractors - dont assume all employers are large cash cows

[vetran]

Overall its his problem, I don't get a rise if my council tax goes up, but you want to keep him.

Find out what he is worth in the market ring round the pimps and check a few ads if there is reasonable slice for the agency e.g. if he could get £300 a day and you are paying £400 to the agency then you are OK. If you aren't then you need to up the rate.

Possibly mention the raw market rate for his contract if he moans again, if he smiles and says he's getting more than that then its his problem. If he looks anguished and says I wish I got that, then point him towards the agent and you can act surprised as you assumed the agency was paying him that. If he's angry he will probably tell you his rate. Don't let on what you are paying.

If you find the agent is shafting him then make it clear to them if he goes they are unlikely to get a shot at the replacement.

He should be doing this himself and pushing the agent.

[VectraMan]

I agree - technically it shouldn't be my problem, but if I lose a contractor just because of it and I have to scramble for my project not to get hurt, then it becomes my problem.

Well yes, but you're not losing a contractor because of this, you're losing a contractor because he's decided to ask for a higher rate. We do that, and you response should be exactly the same as any other time a contractor wants to put his rate up (which is "yes - take however much you like" ).

Put it this way: he's not worth more because he's being taxed as an employee than a Ltd. company contractor with identical skills and experience.