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

[Tasslehoff]

You'd think agencies would be putting big pressure on the government since their whole business model is liable to be affected quite substantially.

Maybe the idea of us contractors forming small consultancies is finally going to be worthwhile. I'll be the C++ guy, I need a Java guy, a C# guy and a database guy.

Database guy here! Reasonable rate, M62 corridor! Makes a good brew as well.

[EternalOptimist]

You'd think agencies would be putting big pressure on the government since their whole business model is liable to be affected quite substantially.

Maybe the idea of us contractors forming small consultancies is finally going to be worthwhile. I'll be the C++ guy, I need a Java guy, a C# guy and a database guy.

well, I know an ace database guy.
but he spends most of his time p!ssed posting cr@p on a website

[MrMarkyMark]

I've done over five years on a 3 month contract, public sector work is a joke

Sure is.

I remember having to stand behind a System Administrator (another contractor !) once, to do a server install, to tell him which choices to make.
I wasn't actually allowed to push the buttons myself

[pjt]

You'd think agencies would be putting big pressure on the government since their whole business model is liable to be affected quite substantially.

Maybe the idea of us contractors forming small consultancies is finally going to be worthwhile. I'll be the C++ guy, I need a Java guy, a C# guy and a database guy.

Agencies might be the winners in all of this. Their rile grows to actually being our employers (probably on FTC). So they will likely take a larger cut of the rate to cover costs and an improved margin.

[TheFaQQer]

You'd think agencies would be putting big pressure on the government since their whole business model is liable to be affected quite substantially.

What makes you think that APSCo and REC aren't doing that?

[_V_]

Agencies might be the winners in all of this. Their rile grows to actually being our employers (probably on FTC). So they will likely take a larger cut of the rate to cover costs and an improved margin.

New contractor model. HMR&C take 50% of the rate, the agency takes the other 50%. Both are very happy with the new rules.

Very much thinking about cutting off my nose to spite my face and emigrate and boost the economy of some other country that hates us a little less....

[d000hg]

I wonder how it would work contracting for clients outside the UK. Both based on site and working from the UK. I've done the latter quite a lot.

[eek]

I get the feeling we're missing the bigger picture here.

What with all the other restrictions and additional taxation that the government is forcing upon contractors and Ltd Cos, it would well be that this article was deliberately leaked simply to distract everyone from this summer's budget.

Yes which is why I'm not saying much and waiting.

The new national living wage opens up a fear (that is probably being continually reported to the government) that many firms will just find means of moving people off payroll. Hence something needs to be done to ensure companies don't have the ability to just shift workers off payroll.

[LondonManc]

Why not just bring it in line with the T&S restriction of 2 years then scrap T&S?

[rl4engc]

I can't see what the government would gain by these 'proposals'; by us working as Contractors they get a lot more in corporation tax from us and VAT from the ClientCo than they would get if we were somehow forced to be Permie.

There's also the issue that businesses would rightly say they have a right to employ people as they please, it may not be efficient for them to set up a permanent role with all the extra burden that brings if the task isn't due to run indefinitely (i.e. 100% of roles).