This is a total nightmare. The way these changes are being implemented will put my company out of business.
I run a small specialist company that provides niche services to 3 or 4 banks. the company SHOULD be exempted from the IR35 legislation. I use some permanent staff but quite a few specialist contractor / freelancers which I need to fulfil the specialist service (coding etc).
All these banks have communicated now that that anyone who does contract work for the bank services MUST be paid via an Umbrella company!!! Yet they won't pay extra for the work. I'm making barely 17% margin on the services and running at risk.
The new changes I'm being forced into will add another 14% and also the freelancers / contractors I use will have to pay PAYE tax for outside IR35 services! I will also be forced to give them employment rights, sickness, pension etc, when they aren't employees and are used for specific pieces of work. My company will 95% likely go under now when I've spent 3 years getting it off the ground and I will have to lay off staff. Even if I don't lay off staff, my resource will leave anyway and go to rival companies.
Innovation is being stifled. Most people work for many clients and are most certainly outside IR35, so why is my small company providing a service being treated as a medium to large company and being made to be treated as inside IR35 when the services are CLEARLY outside.
Is what these banks are doing (HSBC, Lloyds etc) unlawful? It's certainly against the spirit of the law and against what the government have said.
Depressing, talk about Blue Monday!
As the government legislation, specifically states that small companies are exempt.
I run a small specialist company that provides niche services to 3 or 4 banks. the company SHOULD be exempted from the IR35 legislation. I use some permanent staff but quite a few specialist contractor / freelancers which I need to fulfil the specialist service (coding etc).
All these banks have communicated now that that anyone who does contract work for the bank services MUST be paid via an Umbrella company!!! Yet they won't pay extra for the work. I'm making barely 17% margin on the services and running at risk.
The new changes I'm being forced into will add another 14% and also the freelancers / contractors I use will have to pay PAYE tax for outside IR35 services! I will also be forced to give them employment rights, sickness, pension etc, when they aren't employees and are used for specific pieces of work. My company will 95% likely go under now when I've spent 3 years getting it off the ground and I will have to lay off staff. Even if I don't lay off staff, my resource will leave anyway and go to rival companies.
Innovation is being stifled. Most people work for many clients and are most certainly outside IR35, so why is my small company providing a service being treated as a medium to large company and being made to be treated as inside IR35 when the services are CLEARLY outside.
Is what these banks are doing (HSBC, Lloyds etc) unlawful? It's certainly against the spirit of the law and against what the government have said.
Depressing, talk about Blue Monday!
As the government legislation, specifically states that small companies are exempt.
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