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"20% of UK businesses would rather axe their contractors than deal with IR35"

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    "20% of UK businesses would rather axe their contractors than deal with IR35"

    20% of UK businesses would rather axe their contractors than deal with IR35 – survey • The Register

    The figure will be far higher than 20% when businesses finally get round to it.

    #2
    Originally posted by ChimpMaster View Post
    The figure will be far higher than 20% when businesses finally get round to it.
    Yup.
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    Former member of IPSE.


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    Many a mickle makes a muckle.

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      #3
      Good luck to 'em. None of the many clients I have worked for over 20 years would have a prayer of meeting their reporting obligations without contractors.

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        #4
        Initially likely to just outsource more aggressively.

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          #5
          Well, that's the endgame isn't. Move us from being a quick and easy resource to engage with, that works just like their other suppliers into being something they have to suddenly worry about

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            #6
            Originally posted by vwdan View Post
            Well, that's the endgame isn't. Move us from being a quick and easy resource to engage with, that works just like their other suppliers into being something they have to suddenly worry about
            and cost them a great deal more! As an example, when I worked for a previous software house, I was asked to cost a requirement based on the number of days work it entailed. I worked out the cost to be £5000 of my time. The work was done, and eventually, quite by accident, I found out that the client had been charged £35000 for the solution. Ultimately, the client ditched its links with that software house, but has by necessity, been obliged to engage with another, with support provided offshore mostly.

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              #7
              I took part in this survey. The results didn't tell us anything we didn't already know or are not seeing happening every single day.

              Nice to have the words 'official survey' and various percentage figures slapped all over it. But in terms of it having an adverse effect on the current HMRC thinking, it is slim to none.

              In these days of oversight committees and ombudsmen and the like, I still do not understand how the HMRC are not asked to first demonstrate to the world Their understanding of Their own rules before chucking the whole can 'o' worms on to the Private Sector companies?

              Perhaps, as a suggestion, a run of 10 straight wins in court might be an apt example...

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                #8
                Originally posted by simes View Post
                I still do not understand how the HMRC are not asked to first demonstrate to the world Their understanding of Their own rules before chucking the whole can 'o' worms on to the Private Sector companies?
                They had to make the change, there's tens of thousands of permie-tractors sat side by side with employees doing the same job but paying less tax ( although you could argue that one as the permies typically earn less).

                Yes the lines between in/out of IR35 aren't crystal clear in all cases, but for most permie-tractors there is no doubt they're inside IR35. Putting the liability with the end clients who know exactly what the working conditions are like, sounds perfectly sensible.

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                  #9
                  Originally posted by krytonsheep View Post
                  They had to make the change, there's tens of thousands of permie-tractors sat side by side with employees doing the same job but paying less tax ( although you could argue that one as the permies typically earn less).

                  Yes the lines between in/out of IR35 aren't crystal clear in all cases, but for most permie-tractors there is no doubt they're inside IR35. Putting the liability with the end clients who know exactly what the working conditions are like, sounds perfectly sensible.
                  Fair point. But behind this (perhaps correct) thinking is a defining tool, CEST, which is so far below par, it is actually digging. How is This going to help the 10s of thousands of companies that previously had no knowledge of this tax law, to ramp up their thinking and to define Us?

                  Other comments in other threads suggest contractors using a SoW contract. Which is all well and good but this is rather (read: Totally) dependent on newly (and perhaps incorrectly) educated companies to Allow this to happen.

                  The one most often quoted element that contractors like about being a contractor, that of Control, has irrevocably disappeared.

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                    #10
                    Originally posted by simes View Post
                    Fair point. But behind this (perhaps correct) thinking is a defining tool, CEST, which is so far below par, it is actually digging. How is This going to help the 10s of thousands of companies that previously had no knowledge of this tax law, to ramp up their thinking and to define Us?

                    Other comments in other threads suggest contractors using a SoW contract. Which is all well and good but this is rather (read: Totally) dependent on newly (and perhaps incorrectly) educated companies to Allow this to happen.

                    The one most often quoted element that contractors like about being a contractor, that of Control, has irrevocably disappeared.
                    Genuine question. If we're engaged on a SoW basis rather than T+M, and the end client buggers around so the job takes a lot longer than projected, what happens? Let's say I an contracted to spin up a few environments in the cloud using Terraform and ansible. I'm all ready to go, but the client wants to connect via their private corporate connection rather than the Internet, and their internal networks team hold it up for 2-4 weeks.

                    Presumably I don't get extra, even if the cause of the delay is with the client?
                    And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

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