HSBC contractors to be inside IR35

[Mohit007]

They will be inside IR35. Rates will be the same. They might be converted to perm.

A shame HBOS did not contact QDOS.....

Why do you think via third party is Inside IR35?

As per agency they are outside IR35 , and I will be working as consultant , but not contractor. I will get their contract reviewed by QDOS. Also, this is going to be fixed term contract instead of rolling contract.

[northernladuk]

Why do you think via third party is Inside IR35?

As per agency they are outside IR35 , and I will be working as consultant , but not contractor. I will get their contract reviewed by QDOS. Also, this is going to be fixed term contract instead of rolling contract.

An FTC? They are employment contracts so deffo inside.

[DeludedKitten]

An FTC? They are employment contracts so deffo inside.

I would guess that this is poor terminology used here. Not an FTC in terms of being a pseudoemployee but just having a "fixed term" of (say) 6 months rather than 1 month rolling contract.

May be wrong though.

[RyanDS]

An FTC? They are employment contracts so deffo inside.

Some people just use the wrong terminology.

My current role is definitely outside IR35, I am doing an audit and project lead on an implementation. The FD where I am working always refers to me being on a 6 month FTC, whereas technically it is an estimated 6 month project plan I am engaged to complete.

It's not worth the hassle of ever trying to ask him to not refer to me as on FTC.

Edit: Or what deludedkitten said...

[northernladuk]

I would guess that this is poor terminology used here. Not an FTC in terms of being a pseudoemployee but just having a "fixed term" of (say) 6 months rather than 1 month rolling contract.

May be wrong though.

I think you are right, just yanking thr OPs chain but he needs to drop the rolling contract term as well.

[Quilp]

20% reduction in current contract rates offered at HSBC

I've heard from a reliable friend of mine who is contracting at HSBC, that they are informing their contractors that they will be inside IR35. There will be no changes to day rates and contractors will either continue on their projects at current rates, be offered perm roles (in some cases) or they can reject this and walk away.

I'm guessing that because we are now less than 12 months from the April 2020 date, those on 12 month contracts will need to know where their contracts sit.

Are there any other HSBC contractors in the forum who've been informed similarly?

Whilst this isn't unexpected, I'm surprised by the blanket determination by such a large organisation.
I was hoping that one of the big players would make the necessary updates to working practises and contracts etc. to allow them to determine their contractors out of scope - or at least look at roles individually and then decide.

Worrying if this is the precedent and other simply follow.

A friend of mine has been told that he can a) go perm from next year onwards or b) accept a 20% reduction in current day rate and stay on as a contractor but inside IR35. His whole team has been told this by official email. The 20% reduction is presumably to keep HSBC's costs down as they will need to pay employers' NIC.

So either go perm, or stay contracting, with a big cut in the rate, and more tax. There are various posts suggesting that people will be offered the same day rate, but that in itself will be more costly for HSBC due to NIC. I wonder if the offer of a contract extension but at a lower rate + inside IR35 will materialise elsewhere.

[BoredBloke]

A friend of mine has been told that he can a) go perm from next year onwards or b) accept a 20% reduction in current day rate and stay on as a contractor but inside IR35. His whole team has been told this by official email. The 20% reduction is presumably to keep HSBC's costs down as they will need to pay employers' NIC.

So either go perm, or stay contracting, with a big cut in the rate, and more tax. There are various posts suggesting that people will be offered the same day rate, but that in itself will be more costly for HSBC due to NIC. I wonder if the offer of a contract extension but at a lower rate + inside IR35 will materialise elsewhere.

So HSBC want to a 20% reduction in rate to cover their increased costs - what about the contractors increased costs as they will have to pay more tax and lose lots of expenses, especially if they work away from home.

[BrilloPad]

So HSBC want to a 20% reduction in rate to cover their increased costs - what about the contractors increased costs as they will have to pay more tax and lose lots of expenses, especially if they work away from home.

HSBC think they can get other contractors in to do the job. Or get permies in. Or they will offshore it.

[Guesstimator]

HSBC think they can get other contractors in to do the job. Or get permies in. Or they will offshore it.

Anyone know how easy it is to swap business accounts from one bank to another?

[deeter]

The offshoring approach should be interesting. A friend who works there has said they already offshore sections of the accounting departments to India and it hasn't gone very well....