November Budget - Stop Public sector IR35 rules coming into the Private sector

[Lance]

so you are in the clear if IR35 rules are introduced into the private sector then?

IR35 already applies to the private sector. And always has.

Do you understand what it is you are speculating will happen?

[tarbera]

IR35 already applies to the private sector. And always has.

Do you understand what it is you are speculating will happen?

Lots of people on these boards work for a bank via a PSC have had their contracts reviewed and are outside IR35

Roll forward to April next year, when banks all take the least risky option and convert all roles into IR35 caught

Thus your £10K a month contract suddenly becomes £4.5K net earnings

From that £4.5K you need to pay your expenses (fly up and down from Scotland and stay in London hotels £2.5K from net earnings)

Your accounts - Net earning, that new laptop - ohh from your net earnings again, £150 for a xmas party - not any more. Have a company car lease, out your net earnings again

So after expenses say you are left with £1500 to pay your mortgage, wife and family, holidays etc

So from your £10K a month contract you earn about £10 an hour in your pocket

[SueEllen]

Lots of people on these boards work for a bank via a PSC have had their contracts reviewed and are outside IR35

Roll forward to April next year, when banks all take the least risky option and convert all roles into IR35 caught

Thus your £10K a month contract suddenly becomes £4.5K net earnings

From that £4.5K you need to pay your expenses (fly up and down from Scotland and stay in London hotels £2.5K from net earnings)

Your accounts - Net earning, that new laptop - ohh from your net earnings again, £150 for a xmas party - not any more. Have a company car lease, out your net earnings again

So after expenses say you are left with £1500 to pay your mortgage, wife and family, holidays etc

So from your £10K a month contract you earn about £10 an hour in your pocket

Don't presume everyone lives in Scotland.

What will happen if IR35 rules are enforced in the bad way they are enforced in the public sector is some companies especially those that aren't near a city or large town will find they cannot get contractors even if they up their rates.

The only contractors companies in cities and large towns will get will be ones who live in commutable distance. In the case of the banks in London this means they will still get those who live in London and the SE.

[mudskipper]

My letter is sent. We've got a new boy, so I'm hoping he might be a bit keener than his predecessor.

[vwdan]

Just sent me - edited it and I'll admit it got a bit ranty towards the end there!

[SimonMac]

Are we sending it to the HoC or constituency office?

[cojak]

My guess is that this is going to happen irrespective of any letter writing and then rolled back 1 -2 years after implementation due to the chaos brought into the private sector.

Those contractors who can survive those months will be the ones best placed to benefit from the roll-back.

[Eirikur]

so you are in the clear if IR35 rules are introduced into the private sector then?

no and neither are you IPSE member or not*

*I suppose you mean public sector rules introduced in the private sector because IR35 has been around a very long time also in the private sector

[BoredBloke]

Presumably they will roll it out into the private sector to level the playing field and remove the unfairness between the public and private sectors - avoiding the fact that they were responsible for creating the unfairness and uneaven playing surface in the first place.

[poorautojobber]

I'm having an optimistic day.
Guys. If your contract is outside and more importantly your working practices are outside what are you worrying about. These clients need you as much as you need them. An employee will still cost more even with significant rate rises.

On the other hand your probably right we are all doomed.