Results of the public sector consultation is up

[youngguy]

How about start a new thread asking this rather than de-railing this one?

Bah humbug - but ya got me on this one I think!

[seeourbee]

I can't find the posts now, but some people have turned down future contracts because if "this". We should start a thread that keeps record of these rejections , simply from the viewpoint of evidence that the market is been twisted in a way it wasn't previously.

[northernladuk]

I can't find the posts now, but some people have turned down future contracts because if "this". We should start a thread that keeps record of these rejections , simply from the viewpoint of evidence that the market is been twisted in a way it wasn't previously.

No real point. There are so few of us compared to the contracting pool and the ones that post will be the ones that have a clue. The results will be meaningless.

[seeourbee]

But it will be evidence. Evidence for people like QDOS could use. Government always asks for evidence, that's how it generally makes policies.

[LondonManc]

But it will be evidence. Evidence for people like QDOS could use. Government always asks for evidence, that's how it generally makes policies.

Agreed but how are we meant to capture the information?

[SussexSeagull]

So just for fun what are the predictions for the longer term (ie a few yrs down the line).

The end of ltd contracting , a complete retraction , new frameworks for circumventing rules , everyone costing twice as much ?

Warm up those crystal balls!

I suspect with the extra admin and NI the Agencies will have to charge the public sector more but I very much doubt the contractor will see any of this.

The obvious knock on will be public sector contracts being much less desirable than private sector ones (at least until the rules are imposed on the private sector in a couple of years).

Someone will go to court to try and get employee rights such as paid holiday.

The new rules will come over to the private sector, but being in IR35 won't be so much the default position.

The industry loses flexible resource and projects will suffer.

Kind of annoying really. From my understanding of the history of contracting, before 1979 contractors were happy to be freelancers (which, if we are being honest, most of us are) but the law basically forced incorporation on them. As soon as that happened people were going to try and reduce tax liabilities.

IR35 was an appalling piece of legislation that never really worked and has led to what is happening now, plus people being forced into self employment who didn't want to be.

All eminently avoidable.

[BlueSharp]

Recently I had been pulling £650 per day. I then hit a slow patch and wanted some revenue coming in before the end of my company year so I went for interviews at £450, even as low as £349.

The same is going to happen when tax goes up for everyone. You'll just have to accept less cash coming in.

To some extent I think rates will go up but not by anywhere near enough. You've got to realise that clients will just be getting exactly they same as the ever did so why would they want to swallow a big uplift? They like contractors because they are easy to recruit (put out an advert and you get 10 good people by late Thursday. For permies it can take ages to find anyone who can walk and chew gum at the same time). They like contractors because they can flex their numbers without hassle. But already firms feel pain from contractor costs. This will just tip the balance towards filling roles with permies

I think there will still be an active contractor market but noticeably less financially attractive.

To a certain extent I agree with you, however I think a lot of contractors will go Permie when they become caught by the PS rules and the same will happen when it is rolled out to the private sector. I would seriously question traveling 2.5hrs a day for an extra 15% in pay, with no expenses to claim, paying full whack tax and none of the permie perks.

However those with rare and difficult to find skills will be able to command a higher rate to compensate. I think the trick to continuing on with the new market conditions is the same as it always has been differentiate yourself and stay ahead of the curve.

[SussexSeagull]

To a certain extent I agree with you, however I think a lot of contractors will go Permie when they become caught by the PS rules and the same will happen when it is rolled out to the private sector. I would seriously question traveling 2.5hrs a day for an extra 15% in pay, with no expenses to claim, paying full whack tax and none of the permie perks.

However those with rare and difficult to find skills will be able to command a higher rate to compensate. I think the trick to continuing on with the new market conditions is the same as it always has been differentiate yourself and stay ahead of the curve.

Problem is the Treasury are in London and forget that the rest of the country need more than an Oyster Card to survive during the working week.

[NHS01]

So I'm with the NHS at the moment, have an offer from private sector

would like to stay in current role and project but will most likely shift just to avoid the potential fallout from this, a real shame as I like the programme and people

Been offered an increase to remain but struggling to figure out what sort of increase would leave me in the same position should I get hit with IR35 - 20%?

[marius123]

To a certain extent I agree with you, however I think a lot of contractors will go Permie when they become caught by the PS rules and the same will happen when it is rolled out to the private sector. I would seriously question traveling 2.5hrs a day for an extra 15% in pay, with no expenses to claim, paying full whack tax and none of the permie perks.

This is something I keep thinking about.... I reckon my gross contract rate is about 40-50% above my likely permie salary (at least locally) and that's always been something that is important and is good compensation for risk and lack of perks. I've done a few public sector contracts and it does feel likely that if rates don't go up to compensate then that will be squeezed and I won't be making a lot more than if I was a permie somewhere.

I console myself with the fact that I didn't become a contractor for (just) the money.

I get bored very easily. I don't like to work on the same thing for years on end. I've worked for consultancies before to try and avoid this but have managed to get stuck with clients for ages regardless. I enjoy my variety. It helps me improve my skills and learn more and keeps me challenged. This won't change.

My Limited Co also does more than just contracts. I do a number of smaller engagements every year, training courses and the like and purer shorter term consultancy (where there's more of an output sort of). This makes me genuinely feel that my company isn't just a vehicle, it is a business I run and I'm doing what I can to increase the amount of work I do in this way. If my "day jobs" end up caught by IR35 then the rest of my business doesn't and goes on as it always did.

This all kind of makes me at peace with whatever happens and if it becomes less profitable to contract then I'm pissed off but I still won't be going permie.