With the dividend taxation will you continue contracting?

[northernladuk]

Maybe I'm being a bit lacsidasical about all this but how on earth can we be making decisions like this so early? We don't know how much this will actually cost us yet and it could change a number of times before it comes in to effect. I thought most of us contracted for many more reasons than the money anyway.
I'm sitting all this out for a bit and just waiting for the dust to settle first.

[kyber]

Maybe I'm being a bit lacsidasical about all this but how on earth can we be making decisions like this so early? We don't know how much this will actually cost us yet and it could change a number of times before it comes in to effect. I thought most of us contracted for many more reasons than the money anyway.
I'm sitting all this out for a bit and just waiting for the dust to settle first.

Absolutely agree. Obviously, I'm happy to pay less tax than under PAYE not least to offset the additional costs/risks I am exposed to as a contractor, but working outside of the corporate overhead around promotion cases, performance reviews, etc is worth far more to me than anything else. I had come to the point of being so cynical about the hypocrisy in most large organisations around staff development and politics that it is a huge relief to be out of it.

[rl4engc]

As a contractor-turned-business-owner interviewing me for a permie role once said: "Once a contractor, always a contractor."

I predict two trends over the next couple of years to balance this:

1) Market Rate *= 1.05
2) Contracts have to be IR35-Friendly by default

[FarmerPalmer]

Absolutely agree. Obviously, I'm happy to pay less tax than under PAYE not least to offset the additional costs/risks I am exposed to as a contractor, but working outside of the corporate overhead around promotion cases, performance reviews, etc is worth far more to me than anything else. I had come to the point of being so cynical about the hypocrisy in most large organisations around staff development and politics that it is a huge relief to be out of it.

WHS. I went permanent in 2000 when IR35 was introduced. Big mistake. I was put at risk of redundancy every 6 months for 8 years which took its toll on my health. Contracting I can handle the uncertainty and actually feel more in control. It isn't about tax for me. I'm not going back.

[stek]

The Clash had the right idea... Going Underground 💩

Or The Jam.....

[centurian]

If it were that easy, you'd be charging that rate already - unless you don't like money? Market forces may help going forwards, but I'd not be counting on it.

WHS - if the market will support a higher rate, then you are currently under charging. You should demand a rate rise immediately.

Contractors with low T&S and who use brollies or inside IR35 (yes the do exist) will now be at a competitive advantage - as they can clearly manage with existing market rates, so will scoop up contracts at the current market rates, reducing demand for all the contractors affected by this.

There might be a gradual upwards pull if some contractors bail out and go permie, but it will settle into an equilibrium.

[Unix]

If it were that easy, you'd be charging that rate already - unless you don't like money? Market forces may help going forwards, but I'd not be counting on it.

Nope I was happy with my rate of x, but to maintain the same level of income I now need x*1.1.

[Unix]

WHS - if the market will support a higher rate, then you are currently under charging. You should demand a rate rise immediately.

Contractors with low T&S and who use brollies or inside IR35 (yes the do exist) will now be at a competitive advantage - as they can clearly manage with existing market rates, so will scoop up contracts at the current market rates, reducing demand for all the contractors affected by this.

There might be a gradual upwards pull if some contractors bail out and go permie, but it will settle into an equilibrium.

Utter bollocks a contractor will change rates regularly within a range depending on other factors, and clients offer a wide range of rates. Or do you have your rate tattooed onto your forehead

[Scruff]

Or The Jam.....

I throw in my hand... 🎼

[NotAllThere]

Or The Jam.....

Or Torquemada and Nemesis.