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

[SandyD]

Would clients ask our agencies to take on contractors as a fix term contractor/employee on their payroll, and the agency therefore acts as consultancy? However we become fixed term emplyee ... all the cons non of the benefit

[barrydidit]

I have just released lead BA contract roles paying up to £440 in London, and an Edinburgh based BA role at £342.

Lloyds eh? Is that before or after the 10% rate cut?

[BrilloPad]

By comparison I have just released lead BA contract roles paying up to £440 in London, and an Edinburgh based BA role at £342.

Per hour?

[jamesbrown]

Hey guys,

I have been reading into the proposed plans a lot and have read a lot of differing opinions on who will be shafted by these proposals. I know no one will know for sure until Wednesday and perhaps longer as we wait for agency's, accountants and legals experts to digest the changes and find the loop holes but would I be right in thinking that this is aimed more at service desk analysts, desktop analysts etc as in a BAU function that should be filled by a PAYE employee? I am a software consultant who works only on software roll-out projects and in the last 18 months I have worked for 5 different clients, is there more of a chance that the work i do will be seen as genuine consultancy or should I "prepare the lube" like everyone else?

Thanks

Prepare the lube either way

They don't have the desire or the knowledge of the way contractors work to approach this with a scalpel. If we shout loudly enough (and, more importantly, if big businesses shout loudly enough), there may be a further consultation process and there may be some opportunity to influence any final proposals. You don't need to look far to find skeptics though and, if they do change things with the objective in mind of catching "90%" of contractors, I think you can reasonably predict that many contractors who are clearly not disguised permies will be stuffed to some degree.

[xar18]

Lloyds eh? Is that before or after the 10% rate cut?

After!

[m0n1k3r]

Agreed, I can't see the consultancies take all those contractors onto staff......that would screw their business model as much as HMRC are trying to screw ours.

Why? Once you get beyond 70% utilisation rate, perm staff tend to be cheaper.

[m0n1k3r]

I do wonder if we start to see 'SDC' and 'non SDC' style contracts starting to appear. Might be that specific roles or grades in clientco's might logically for that model. E.g. Current client has perm and contract BAs in the 'practice pool' all of which would be 'SDC' as standard, whereas my role as a business architect is more specialised and could be 'non SDC'. Might be that the client makes the decision at their end based in the level of specialism and with input from the agencies.

They already exist in Government-land. The SDC contract is the temporary worker contract, where the contractor forms part of the organisational structure (addition to an in-house team for example) and there are no deliverables or no defined scope for the contractor (see the CL1 framework through Crapita).

The non-SDC contract is the professional services specialist where there are defined deliverables or a defined scope (see most other framework contracts).

[m0n1k3r]

Would clients ask our agencies to take on contractors as a fix term contractor/employee on their payroll, and the agency therefore acts as consultancy? However we become fixed term emplyee ... all the cons non of the benefit

That would technically be a 'worker' and not an 'employee' (there is a difference). You would still get the money but not having to operate PAYE yourself, which might be a bit of relief if all you want is to get the money into your personal bank account, but bad if you want to retain profits in the company to grow the business.

[AtW]

£85k is a very high salary

It was 20 years ago.

Now it ain't.

[Zero Liability]

Prepare the lube either way

2017 WEF = lube.

2016 WEF = bareback double penetration after they're done boinking oinky's head.