HSBC contractors to be inside IR35

[SimonMac]

Yup.

HSBC may well bin all their contractors, but my public sector client struggles to find enough decent contractors. And they pay good rates outside of IR35.

That would only be the case if you worked for HMRC which is soul destroying no matter how much they pay, NHS (including NHSE, NHSI, NHSD, NHSX, NHSabcdefghijklmnopqrstuvwxyz), DWP and DfE all doing well for contractors

[northernladuk]

There's another thought here... .

Based on your thoughts/posts over the last few days I stopped reading at this point. I'd leave all that thought stuff alone for a few days if I were you.

[northernladuk]

That would only be the case if you worked for HMRC which is soul destroying no matter how much they pay, NHS , DWP and DfE all doing well for contractors

Well I can safely two of those three have/had some right cockwombles on site that are suited only to PS contracting. One from being with them and seeing it myself. Not a bad gig as they go but definitely got more than their fair share of plodders and clueless permi-tractors. When I was helping them interview we certainly didn't seem to be getting the cream of the crop of applicants.

The other, well.. just because I know some dodgy contractors working for them

[swamp]

It seems to me it's all about reputational risk for HSBC. They don't want attract the kind of bad publicity the BBC have had over this.

Once they realise they face other rep risks, because of projects not completed, failing systems etc., and when they realise their original concerns were largely unfounded HSBC will hire contractors once more.

[ContractorHardman]

I am at HSBC and I can confirm that it is true. I will not be renewed however the interesting part was about turning me from Contractor to a Permie which cant happen because... HSBC has a hiring freeze on at the moment in my department.

I suspect this is more a money saving thing under the guise of IR35 as they haven't performed well. They terminated a few contractors in March before the end of their contract dates. They aren't happy as they are losing a lot of experience and people who can make things happen.

[Spoiler]

Spoke to a contractor at HSBC recently - and they are going permie there soon. They have lost permie headcount recently within their team, so assume they can recruit to fill that space.

[AndrewK]

I am at HSBC and I can confirm that it is true. I will not be renewed however the interesting part was about turning me from Contractor to a Permie which cant happen because... HSBC has a hiring freeze on at the moment in my department.

I suspect this is more a money saving thing under the guise of IR35 as they haven't performed well. They terminated a few contractors in March before the end of their contract dates. They aren't happy as they are losing a lot of experience and people who can make things happen.

Did they offer you to "move to a third-party supplier"?
Or is it just a fancy name to an Umbrella inside IR35?

[DSF70]

It will put an end to permi-tractors that is for sure, which I guess is the whole point of the change.

If you have been at an organisation as an outside IR35 contractor and are looking to switch perm or it is deemed inside ir35, you will need to be prepared to cough up the previous years tax and penalties as you can guarantee HMRC will come looking. Personally there is is no way I would stay and switch status without having money to cover the previous years tax, interest and penalties. I have always had this in the back of my mind which is why I'm very reluctant to do more than 2 years on a gig and never more than 3. Mainly the cost to take me to a tribunal will be more than any Employers NI payments for each engagement.

A few of my contractor mates were saying exactly the same this week. All of think that this group of “new” employees will be an easy target for previous year’s tax.

My contract finishes in Sept. project is gonna extend beyond that, but might be a good time to go somewhere else to lose that traverse of contractor > permie.

[Mohit007]

I was offered a role through third party

I was offered a contract role at HSBC by Third Party - after reading this thread , I am bit puzzled now!

Not sure what is the difference it is going to make if you contracting via Third Party or Resource Solution?

Any recent experience using Third-party pls?

[ContractorHardman]

Did they offer you to "move to a third-party supplier"?
Or is it just a fancy name to an Umbrella inside IR35?

My Business Line has had its funding severely cut so they didn't have the budget to keep me under any circumstances despite trying quite hard for sign off. I personally think the whole IR35 thing is being used as an excuse to cut costs.