My ClientCo Just Blanketed Everyone Inside

[helen7]

Hello Harry!

Hello MoreLamb

[Andy2]

Does this IR35 malarky affect the contract outside UK also?
what if we do contract in europe, will it be inside or outside IR35 ?

[jmo21]

The other has been informed Royal London have taken a blanket approach to any contractor, whether via managed service company or agency: out the door as soon as possible please.

As JMO21 mentioned: They are in process of awarding the contract to Cognizant or Tata.

To be clear:
- I didn't mention anything about anyone awarding any contract to Cog or Tata. RL do have a lot of Cog people already on site. No idea if there are any Tata.
- in bold, that is not what I am seeing at RL, they are disengaging Ltd co contractors form 14th Feb, but will continue to use contractors PAYE/brolly through a preferred partner.
- I imagine Cog will get more business as a result of the Ltd co decision

[rogerfederer]

To be clear:
- I didn't mention anything about anyone awarding any contract to Cog or Tata. RL do have a lot of Cog people already on site. No idea if there are any Tata.
- in bold, that is not what I am seeing at RL, they are disengaging Ltd co contractors form 14th Feb, but will continue to use contractors PAYE/brolly through a preferred partner.
- I imagine Cog will get more business as a result of the Ltd co decision

For clarity: I was reporting back what I was told by the individual and what they've been told by the MSP. Could be an agency-MSP fib, always difficult to tell in the circumstances.

[psychocandy]

Forcing the companies to use Tata and Infosys instead of expensive contractors was always the end game for Tories. Those indian companies donate millions for Tories to fight elections.

Alas it looks that way....

[Whorty]

Alas it looks that way....

And yet contractors still vote for the party that is having a direct impact on their take home pay and businesses. The mind boggles.

[psychocandy]

Something else that is wrong is that... From what I've been hearing the starting point won't be same rate! Will be a cut of ~25% on rates (to include Employer NIC, 'holidays' and 'pension' - basically client wants to keep the same cost). If you consider the 'holidays' and 'pension' as normal income you will still be looking at around ~10/15% cut (approximately the NIC).

So, MAYBE, if too many contractors reject this they will be forced to offer an 'increase' of 15 to 25% to the initial cut, putting the rate approximately to what it was initially... Forget increases of 25% on the original rates! That won't happen for 90% of the clients!

Also don't forget, vast majority of clients will take similar approach so contractors won't have much choice! And with the amount of contractors in the market someone will eventually accept it, and the worse part is clients are perfectly aware of this and are not shy to say it in your face!

Yes thats the problem. If EVERYONE says "no raises" then contractors wont have much choice. But then a lot more will got back permie employement as well. After all, not worth contracting when the pay gap is narrowing.

In my case, I left an outside IR35 role end March 2017, took on an inside IR35 PS role April 2017. I wasn't involved but the rates were hiked. I had a choice, take home same as before (even though rate is 35% higher), and had to use umbrella. No brainer.

Of course, lets not forget, if you're a mon-fri stay away contractor its going to have an even larger effect. No more expenses. £200-£300 a week on hotels plus a long drive are now funded out of YOUR post-tax income.

Again with me, gig is 13 miles away from home so makes not a lot of difference to me. In fact, if anything it narrows down the field. No-one is going to be keen to come to wales and have to shell out for hotels as well.

It'll be interesting to see how it pans out in the private sector...

[CryingSheep]

Yes thats the problem. If EVERYONE says "no raises" then contractors wont have much choice. But then a lot more will got back permie employement as well. After all, not worth contracting when the pay gap is narrowing.

In my case, I left an outside IR35 role end March 2017, took on an inside IR35 PS role April 2017. I wasn't involved but the rates were hiked. I had a choice, take home same as before (even though rate is 35% higher), and had to use umbrella. No brainer.

Of course, lets not forget, if you're a mon-fri stay away contractor its going to have an even larger effect. No more expenses. £200-£300 a week on hotels plus a long drive are now funded out of YOUR post-tax income.

Again with me, gig is 13 miles away from home so makes not a lot of difference to me. In fact, if anything it narrows down the field. No-one is going to be keen to come to wales and have to shell out for hotels as well.

It'll be interesting to see how it pans out in the private sector...

Agreed (in part). Just don't forget the number of permie positions is also on the employers hands... if they prefer PAYE/brollie they won't offer permie. In the end there won't be enough positions for everyone to go permie and we have to accept whatever they offer. Most likely in a few months the market regulates itself as things won't be as bad as they look right now.

[DoctorStrangelove]

Of course, lets not forget, if you're a mon-fri stay away contractor its going to have an even larger effect. No more expenses. £200-£300 a week on hotels plus a long drive are now funded out of YOUR post-tax income.

Again with me, gig is 13 miles away from home so makes not a lot of difference to me. In fact, if anything it narrows down the field. No-one is going to be keen to come to wales and have to shell out for hotels as well.

It'll be interesting to see how it pans out in the private sector...

WPCS.

Not much in the way of embedded stuff around here & I'm certainly not paying for hotels and mileage out of my taxed income.

So, as a certified I shall sit back and let the country keep me.

[BR14]

And yet contractors still vote for the party that is having a direct impact on their take home pay and businesses. The mind boggles.

do they? - how do you know that?