Contracting role offer - but now IR35 being repealed...

[eek]

No, not for no reason at all. Extra leverage because after April, the market may open up for outside IR35 roles, in which case the threat/chances of me leaving for a higher paying role increases.

Outside IR35 roles are likely to pay less than inside roles.

Currently I'm seeing inside roles at anything from £550-750 a day

While outside roles peak at about £600 a day...

[Inspired]

I'm sure they can replace you.

Of course, but hopefully I would have built up a good reputation by then. Moreover, certain skillsets can be harder to source too.

[Inspired]

Outside IR35 roles are likely to pay less than inside roles.

Currently I'm seeing inside roles at anything from £550-750 a day

While outside roles peak at about £600 a day...

Ah, ultimately I would hope to earn a sizeable amount more if I went outside IR35 given the added risk/potential paperwork. That being said, the role I am expecting an offer for is at £875/day. Therefore, the income of the outside IR35 daily rate would need to be a fair bit higher if I ever went outside.

[eek]

Ah, ultimately I would hope to earn a sizeable amount more if I went outside IR35 given the added risk/potential paperwork. That being said, the role I am expecting an offer for is at £875/day. Therefore, the income of the outside IR35 daily rate would need to be a fair bit higher if I ever went outside.

You are not cut out to be a contractor - find a permanent job....

I have never seen such a stupid comment on here and that says a lot - go and have a think about how markets work....

[Inspired]

You are not cut out to be a contractor - find a permanent job....

I have never seen such a stupid comment on here and that says a lot - go and have a think about how markets work....

Added risk from having a large tax bill from HRMC if they deemed my outside IR35 role to be inside (assuming after April I started an outside IR35 contract). Added paperwork from setting up a limited company and doing the book keeping/getting an accountant. Though I am a newbie to contracting so have much to learn.

Not sure why my post irked you so much, seems like you're having a bad day haha

[WTFH]

Added risk from having a large tax bill from HRMC if they deemed my outside IR35 role to be inside (assuming after April I started an outside IR35 contract). Added paperwork from setting up a limited company and doing the book keeping/getting an accountant. Though I am a newbie to contracting so have much to learn.

Not sure why my post irked you so much, seems like you're having a bad day haha

You seem to think that your problems are your client's problems.

A client doesn't pay you an amount based on the risk you take of paying tax. They pay based on your skill, knowledge and experience. They pay somewhere around the market rate. Some of the money they pay may go to an agency (unless you are direct), some may go to an umbrella (if you use one) and the rest to you, or some may go through your Ltd.
If the client offers £1,000, then that is what they offer, before intermediaries, HMRC or others, get their cut. The client doesn't care about who gets what in the chain, they want a deliverable for a price they pay.
Everything else to them is irrelevant. And if you can't understand that, then you'll never understand why some find your responses very frustrating.

[Inspired]

You seem to think that your problems are your client's problems.

A client doesn't pay you an amount based on the risk you take of paying tax. They pay based on your skill, knowledge and experience. They pay somewhere around the market rate. Some of the money they pay may go to an agency (unless you are direct), some may go to an umbrella (if you use one) and the rest to you, or some may go through your Ltd.
If the client offers £1,000, then that is what they offer, before intermediaries, HMRC or others, get their cut. The client doesn't care about who gets what in the chain, they want a deliverable for a price they pay.
Everything else to them is irrelevant. And if you can't understand that, then you'll never understand why some find your responses very frustrating.

Thank you for your well reasoned response. It's a possibility after April then that clients reduce their rates for the same jobs as contractors can now go outside IR35 so they would be prepared to accept those lower rates, in which case market rates would fall.

[eek]

Added risk from having a large tax bill from HRMC if they deemed my outside IR35 role to be inside (assuming after April I started an outside IR35 contract). Added paperwork from setting up a limited company and doing the book keeping/getting an accountant. Though I am a newbie to contracting so have much to learn.

Not sure why my post irked you so much, seems like you're having a bad day haha

Because you both don't appear to listen to other people's posts nor to be willing to do any research. The simple fact is the market works as WTFH describes AND provided you follow some simple pieces of advice it's very unlikely HMRC will come calling.

And even if they did come calling you simply need to throw the problem at the tax specialists you pay monthly and the issue is 99% of the time going to disappear into the too much hassle box...

As for how HMRC will view things come April 6th - I posted this last week - nothing I've heard from HMRC changes my viewpoint...

[WTFH]

Thank you for your well reasoned response. It's a possibility after April then that clients reduce their rates for the same jobs as contractors can now go outside IR35 so they would be prepared to accept those lower rates, in which case market rates would fall.

I'm not sure what your problem is with reading comprehension, we're trying to tell you that clients will pay what they need to pay to get the quality of people to deliver the work. They don't care about you personally, or how much you'd like.
If they can get someone with 20 years successful contracting experience for £800 a day, why would they pay someone with 1 year's contracting experience £1,000 a day?
They will pay what it takes.
If there are 10 contractors up for a role, which one is the best fit in terms of experience, availability, cost, etc? The client isn't interviewing people and saying "so, how much of your daily rate will you spend on your mortgage and how much will you put in a pension?"

If you're so concerned about what may or may not happen to rates in the future, then contracting is not for you. Contracting is about taking roles that may last a couple of months or maybe a year, then getting another role that does the same. Each time working on delivering results. Each time accepting the risk that the next contract might take a few months to turn up. If you're thinking that April 2023 is a negotiation point for your rate today, you need to wait until April to secure your contract. Don't risk it now or you might be getting low-balled. Or maybe do risk it now cause the rate might drop.
If you don't want to take the risk, you're not going to last long as a contractor.

[vetran]

Because you both don't appear to listen to other people's posts nor to be willing to do any research. The simple fact is the market works as WTFH describes AND provided you follow some simple pieces of advice it's very unlikely HMRC will come calling.

And even if they did come calling you simply need to throw the problem at the tax specialists you pay monthly and the issue is 99% of the time going to disappear into the too much hassle box...

As for how HMRC will view things come April 6th - I posted this last week - nothing I've heard from HMRC changes my viewpoint...

Nice recommending burying your head and hoping HMRC don't knock is your advice considering your dismissive attitude.

Now if you recommended a contract review & if possible insurance then if HMRC come calling they get a legal letter telling to go forth that should make you look less like an easy target and hopefully less worth pursuing. HMRC are short on capacity but they are quite willing to expend considerable amounts of our money if they smell blood.