Crackdown on personal service companies could raise £400m in tax

[d000hg]

I don't think it will kill it dead. Contractors will either have suck it up, go permie, retire, run their plan B full-time, or emigrate. Most can't retire and the last two options are too scary for more than a minority. If there aren't enough jobs for everyone to go permie, there is no choice but to contract for what you can get.

The one making 'a fool of yourself' isnt me. Perhaps you should attempt to write a literate post then your obvious gaffe's wouldnt make you look the fool.

I'm sorry for using such long words, it's not your fault that you're stupid and I shouldn't have criticised you for it. In the mean-time I've added a little bit of emphasis to give you some clues.

[GB9]

All of which is BS. Everyone with a shred of intelligence knows it doesnt take 4+ years to become integrated.

And your assumption is incorrect. Ive worked on a number of long projects pre IR35.

Anyone who works 12 months or more is effectively a permie tractor.

On what basis?

I've been with current client for 2 years on the same project. The project deliverables are very clear. I dont move around between projects within the organisation. I have very specialised skills that no one else in the client organisation has. I have my contract and working practises checked at each renewal and recently had the contract amended by both agency and client as they are genuinely back to back. Explain why I am integrated?

I think Centurion 's comment was more relevant in that a specific event may change status regardless of timescale.

[Zero Liability]

Not that simple, IMO.
Some banking regulatory programs, for example, BCBS, are going to run a lot longer than that.
They have deliveries due, at certain points, during that time, to the regulators.

Once the program is done and dusted, there is no intention to keep the staff.

Yup, and these will usually be finite in duration but not always predictable in cost or exact timescales, although target budgets and timescales will be in place; this includes the various remediation and AML projects they have going on. Doesn't change the fact that the banks have every intention of waving goodbye to these contractors as soon as the work is done, as there is no intention or indeed capacity to integrate such finite work into their BAU operations.

[mmmBeer]

Around half the contractors I know use composite/offshore companies of some form or another and I'm wondering if this is really aimed at stopping this market. If so the 400m number quoted seems quite low considering the numbers on these schemes.
To wipe out the whole contract market does seem to be a completely overboard response. What will probably happen is that there will be a raft of new schemes to get around the new rules and there will be an increase in people using them as running a LtdCo becomes no longer viable.

[SpontaneousOrder]

I'm not IT. My view in IT is that if it's a genuine project - I.e. Has a finite end then agree a price for the whole project up front and it takes as long as it takes. If you were truly IT contractors you shouldn't have an issue with that in the main.

hard to have a fixed price when the client doesn't know what they want yet.

[seeourbee]

Then why have they hired you ? Eh ?
That culture can change .

[DaveB]

Then why have they hired you ? Eh ?
That culture can change .

Becasue they know they need something, but dont have the expertise in house to define exactly what it is.

I work in InfoSec. Clients are aware they need it and that they should be baking it in at the start of a project but they either don't have the expertise, or the resources they have are already overstreached. Thats where I come in.

[SpontaneousOrder]

View Post
Then why have they hired you ? Eh ?
That culture can change .

I don't think that would be a good thing.

When you run a hot bath you dip your toes in first before you fill it to the top. Saves you wasting a load of hot (or cold) water if it turns out your judgement was off.

If you're manufacturing a car you might focus on the dynamics first and defer commitment to the upholstery design until you're closer to market - incase that market's aesthetic sensibilities change in the mean time.

Fixed price strongly hints at fixed spec. And that's no good for almost anyone outside the public sector.

[LondonManc]

Becasue they know they need something, but dont have the expertise in house to define exactly what it is.

I work in InfoSec. Clients are aware they need it and that they should be baking it in at the start of a project but they either don't have the expertise, or the resources they have are already overstreached. Thats where I come in.

+1

Same in BI if they've never used a particular tool before. They know what they'd want in the form of pdf/Excel outputs but don't know what interactive analysis/dashboarding capabilities they'll be able to use. Needs a BI specialist to show them what can be done.

[SpontaneousOrder]

+1

Same in BI if they've never used a particular tool before. They know what they'd want in the form of pdf/Excel outputs but don't know what interactive analysis/dashboarding capabilities they'll be able to use. Needs a BI specialist to show them what can be done.

Plus, as I already alluded to, markets are generally dynamic. 2 years is a LONG time in a modern marketplace. It's often absurd to commit to an exact end result that early.