Which one of you is this? Times report on private sector IR35

[psychocandy]

The private sector are not in a position to throw money around like confetti as the public sector do, they earn their money.

Exactly.... And its the private sector companies kicking off when they realise which will help us as contractors...

[northernladuk]

Yes but the public sector is different. The extra comes out of some fund somewhere. When its impacting smaller companies people are going to notice more.

But it's not going to impact small companies you chump. It's only going in to medium to large companies.

Exactly.... And its the private sector companies kicking off when they realise which will help us public sector umbrella employees..

FTFY

[AtW]

I've seen clients struggle to get inside roles filled even at the higher rates. Again the market is our friend in this!

They will offshore those

[jds 1981]

Lots of large companies (such as banks) offshore and nearshore. Obviously there's a trade-off but as costs go up here it becomes more and more attractive.
Either contractor takes a cut, they have to up rates by a couple of hundred a day, or they hire a couple more PhDs in eastern Europe with the option of the occasional nice jolly..

[DimPrawn]

Lots of large companies (such as banks) offshore and nearshore. Obviously there's a trade-off but as costs go up here it becomes more and more attractive.
Either contractor takes a cut, they have to up rates by a couple of hundred a day, or they hire a couple more PhDs in eastern Europe with the option of the occasional nice jolly..

I think contractors are living in cloud cuckoo land if:

1. They think large companies are going to take on risk and the hellfire of HMRC in putting people as outside IR35 with all the comeback, legal pain, fines and issues that would give them.
2. Will just say "hey step into IR35 land, but don't worry here's another £200/day each for your losses now you are paying more tax and NI"
3. Won't call on bodyshops in India and Eastern Europe for "resources" on work permits and also offshore more work.

[TestMangler]

I think contractors are living in cloud cuckoo land if:

1. They think large companies are going to take on risk and the hellfire of HMRC in putting people as outside IR35 with all the comeback, legal pain, fines and issues that would give them.
2. Will just say "hey step into IR35 land, but don't worry here's another £200/day each for your losses now you are paying more tax and NI"
3. Won't call on bodyshops in India and Eastern Europe for "resources" on work permits and also offshore more work.

Not often I agree with the prawn, but, he's spot on, on three counts.

[DimPrawn]

Not often I agree with the prawn, but, he's spot on, on three counts.

Sorry, I will try not to do it again.

[vwdan]

I think contractors are living in cloud cuckoo land if:

1. They think large companies are going to take on risk and the hellfire of HMRC in putting people as outside IR35 with all the comeback, legal pain, fines and issues that would give them.
2. Will just say "hey step into IR35 land, but don't worry here's another £200/day each for your losses now you are paying more tax and NI"
3. Won't call on bodyshops in India and Eastern Europe for "resources" on work permits and also offshore more work.

Eh, I'm not convinced. I've been to quite a few places recently that have learnt some hard and expensive lessons about what cheap foreign resource gets you.

[Guvernator]

Thirded, people thinking their lovely private sector clients are going to take on big bad HMRC on their behalf because they are some sort of irreplaceable uber consultant.

You are a convenient resource, the moment you stop being convenient or get too expensive they will look elsewhere.

Sure there may be the very odd exceptions but my prediction is 95% blanket IR35 through an "approved Umbrella" at roughly the same rate you are on now. They won't care that you have to pay more tax, they'll only be interested in their own bottom line. There are also enough people contracting that if you don't take it, someone else will.

[vwdan]

There are also enough people contracting that if you don't take it, someone else will.

So why are we getting the money we're getting at the moment? Shouldn't we all be on £150 a day?