Lloyds show their IR35 hand.....

[registry]

Lloyds have today announced that all PSC contractors will be communicated by 8th October with news that they will be offered 3 choices a) Leave b) Go Perm c) Go via umbrella company. Following which a short data capture session will be held with Line managers to capture contractor preference. Decisions will then be relayed back to the contractors starting from 9th November. All PSC contractors will need to convert to Perm or Umbrella by 29th Feb or leave the group by 31/3. There is NO CEST assessment being undertaken. Nobody will be deemed IN or OUTSIDE IR35, this is simply being communicated as a new method of engagement for PSCs. Oh. and there are NO rate increases to be offered to compensate for lower take home pay.

[ladymuck]

Wow. So another bank publicly stating that their contractor engagement is a sham.

Sadly, all this is doing is telling HMRC that they've done the right thing. It's going to get harder and harder to push back when major users of contractors are taking this attitude.


Such a shame there isn't a group of professional contractors who could band together to properly fight these changes.

[BABABlackSheep]

A very large financial services company.

1. Go Permie
2. Go under their agreed Umbrella provider
3. Go home

Was indeed Lloyds.

I’ve said on here a number of times that I didn’t think the large organisations will throw contractors under a bus and blanket go inside IR35 or in fact make the effort in assessing whether outside. Instead they will take easiest path and do this. There’s so many different working practices, some people will be inside some outside, even with the same job title. It’s impossible to manage.

Taxman is going to get his way it seems.

[GhostofTarbera]

Lloyds have today announced that all PSC contractors will be communicated by 8th October with news that they will be offered 3 choices a) Leave b) Go Perm c) Go via umbrella company. Following which a short data capture session will be held with Line managers to capture contractor preference. Decisions will then be relayed back to the contractors starting from 9th November. All PSC contractors will need to convert to Perm or Umbrella by 29th Feb or leave the group by 31/3. There is NO CEST assessment being undertaken. Nobody will be deemed IN or OUTSIDE IR35, this is simply being communicated as a new method of engagement for PSCs. Oh. and there are NO rate increases to be offered to compensate for lower take home pay.

Only the contractors that have already been “tapped up” have the option of going perm


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[cojak]

Make no mistake - they HAVE made a decision that contractors are INSIDE IR35.

Using umbrellas is simply a result of that decision (you can’t be outside AND use an umbrella).

They’re just too cowardly to admit it.

[BABABlackSheep]

Make no mistake - they HAVE made a decision that contractors are INSIDE IR35.

Using umbrellas is simply a result of that decision (you can’t be outside AND use an umbrella).

They’re just too cowardly to admit it.

Barclays have said the same thing now. PAYE only.

[edison]

Make no mistake - they HAVE made a decision that contractors are INSIDE IR35.

Using umbrellas is simply a result of that decision (you can’t be outside AND use an umbrella).

Barclays have said the same thing now. PAYE only.

I posted the news about Barclays yesterday.... obviously a complete coincidence that Lloyds announces the same news on the same day...?

[cojak]

Make no mistake - they HAVE made a decision that contractors are INSIDE IR35.

Using umbrellas is simply a result of that decision (you can’t be outside AND use an umbrella).

They’re just too cowardly to admit it.

Actually, all it means is that there is NO outside IR35 contracting with them. Contractors can't argue the toss with them, that's all.

[Lance]

Actually, all it means is that there is NO outside IR35 contracting with them. Contractors can't argue the toss with them, that's all.

I doubt it's true there will be no outside IR35 contractors.
There are always exceptions.

Where I am at the moment they are moving all contractors to FTC or perm. Without exception......*ahem* except for me and another architect. Both of us politely turned down the offers of employment.

Lloyds will continue to have some contractors, just not hundreds of them doing bum on seat work. There are always exceptions.


I must say I'm surprised at the blanket approach being taken by these organisations. Either HR are running the show, or legal are just swerving the effort to do it properly.


I do think that most of the contractors I've met in my entire (incluidng permieland) should actually be inside anyway. I'm not quite with HMRC on the 90% figure of non-compliance. More like 75%.

Best bet for those affected is to scrimp and save. Leave early next year and be prepared to sit it out. At the end of the day the clients still need the skills. They'll either have to be more flexible with the arrangement, or pay more money.

[cojak]

I doubt it's true there will be no outside IR35 contractors.
There are always exceptions.

I quite agree Lance, but they have made a policy decision ("There is NO CEST assessment being undertaken", "this is simply being communicated as a new method of engagement for PSC"), so they will have to keep very quiet about those who they deal with differently.

Have you seen a NDA winging your way yet??