Gerry M on VAT & IR35

[drmouse]

This has already happened in the Public Sector. Rates are going up or roles are being declared outside.

However, a part of the reason for this is that public sector contractors could go to the private sector with relative ease when the reforms came in. This left a massive demand from the public sector with limited supply. They had to up the rates and declare the roles outside to attract the resources they needed back.

When this comes into the private sector, the situation is different. There may not be anywhere for contractors dumped by the clients to go. There aren't enough small business contracts to go round.

I have no idea how it will go. If all the big boys dump their contractors, there will be a massive over-supply of skilled contractors. There will also be massive demand for either permies or contractors who are willing to work through brollies. The market will be well and truly shaken up, but where it will all land... who knows?