Thinking of leaving IT over IR35?

[juckky]

After 20 years of working in the industry the changes that are coming in are for me the straw that breaks the camel's back and I feel that a great many skilled contractors who provide far more than just a bum on a seat when they contract to an end client are being demonised by the huge companies that use our services.

The fact end clients are being so blase regarding adopting a blanket inside approach and the no rate change policy to those being dragged inside is just a classic example of "let's all f**k them over and they can't do anything about it". I for one hope that enough contractors stick 2 fingers up to said clients and we can sit back and watch as they struggle to resource their IT projects. Unfortunately, though due to mortgages ... I think too many contractors will just suck up the loss and move to inside.

The thought of going perm and becoming a number fills me with dread and the thought of using an umbrella company is pretty much on par too, so trying to decide whether to try and find another job doing something different. Hell, I've even considered becoming a tax driver if it means I can still operate my own business.

So what are you planning?

[cojak]

I planned this years ago.

I got myself a good paying job in a small consultancy and I’ve enjoyed it all apart from the lack of holidays.

Planning on going back into contracting next year when the dust has settled.

Adapt and overcome, that’s my motto.

[juckky]

I planned this years ago.

Glad someone did! I stupidly assumed that end clients would not have adopted the policy they have regarding assessment.

[ChimpMaster]

I'm done.

The Loan Charge, the IR35 changes, the touted changes to ER coming along, the constant tinkering and bickering by MPs and HMRC that vilify contractors further and further. The fact that no matter how tight you make your outside-IR35 case, HMRC can still come and hunt you for 6 years back taxes. We're a hated community.

And yet this still feels better than being a permie.

But for now I'm done. Depending on client IR35 reaction (they only knew of changes 'cos I told them!), I'll either be done by March or by end-contract in August and I have no job or contract possibility beyond this. So I will do nothing and contribute no more taxes to HMRC.

Like Cojak I might come back, if there is any work for me in a couple of years. In the meantime, a break will be healthy and is much needed, just to get away from all the sh1t HMRC and HMT are forcing onto the sector.

[oliverson]

I planned on 3 more years max but I'm increasingly thinking of bring that forward 3 years!

I have 3 weeks remaining on my contract now (3 seems to be a popular number in this thread) and then plan on taking a few weeks/months off while observing the market. If something comes my way then fine, if not then I realistically have to look at calling it a day (full time UK contracting) and retire to Andalucia where I have a place.

[nomadd]

After 20 years of working in the industry the changes that are coming in are for me the straw that breaks the camel's back..

[snip]

So what are you planning?

After 30 years of contracting, I'm planning retirement.

Still, will burn down the company cash slowly over the next 2-3 years whilst keeping it operating, so if a contract does come up, I'll take it (I'm not hopeful at all, though - I don't believe things will suddenly get better at some point soon..)

[simes]

After 20 years of working in the industry the changes that are coming in are for me the straw that breaks the camel's back and I feel that a great many skilled contractors who provide far more than just a bum on a seat when they contract to an end client are being demonised by the huge companies that use our services.

The fact end clients are being so blase regarding adopting a blanket inside approach and the no rate change policy to those being dragged inside is just a classic example of "let's all f**k them over and they can't do anything about it". I for one hope that enough contractors stick 2 fingers up to said clients and we can sit back and watch as they struggle to resource their IT projects. Unfortunately, though due to mortgages ... I think too many contractors will just suck up the loss and move to inside.

The thought of going perm and becoming a number fills me with dread and the thought of using an umbrella company is pretty much on par too, so trying to decide whether to try and find another job doing something different. Hell, I've even considered becoming a tax driver if it means I can still operate my own business.

So what are you planning?

I too started in 2000. Climbed into a seat surrounded by frightened and concerned contractors who thought the end was nigh upon the introduction of very same law. And then the dotcom crash happened, swiftly followed by 9/11 and, in the end, they were pretty much right!

Fast forward to today and the clients, who are exposed in ways far and above individual contractors, are as knee jerky as I saw other contractors to be in 2000.

So, IF I am told I am Inside (I will first point out I am being paid from abroad and see if there is any clear wording available to shore up that argument, and if that doesn't work...), I will likely leave in the hope that the seasoned contractors will also leave - for two to three months.

This will be the ONLY method to enforce some immediate client Thinking. The results will likely leave short term benching.

Bending over and going Brolly will only make a rod for our own backs in the long term. Some immediate, and longer lasting term, thinking is required.

If by July, if this is not working, I would actually prefer to drastically reduce the rate and look for smaller projects that might actually deliver and might actually be interesting. £200-300/day. I would not want to be party to anything that gives more tax to the HMRC and demonstrate that what they are doing and how it is being done is in any way a good idea.

[BlackCountryContractor]

I realistically saw the writing on the wall once the HMRC announced private sector reforms quite a while back and having gone through this with Public Sector reform, too many unscrupulous people from top to bottom will taking advantage of what is going on at least for this impending new tax year and I don’t want to touch this with a 10 foot pole if possible.

I’m currently planning on winding down my LTD and sitting tight for 2-3 years via permie job and once the market has stabilised then I might return back but it won’t be the same type of contracting that we once knew or loved.

[Fred Bloggs]

So what are you planning?

Like cojak, I planned for this years ago when it first became clear that the party was actually, finally, going to stop. The last few years I have worked outside the UK and I have had the time of my life actually. The roles (two of them) have been staff roles, yes. But I have been able to make it clear from the get go in each job that it was a mutually beneficial arrangement that would come to an end when I wanted it to. The result? I have earned more cash the last few years than I ever did in the UK as a contractor. As a bonus, I have worked in and visited some terrific places and met lots of people I would never have done otherwise. This year I am retiring. I have had a great few years, thoroughly enjoyed myself, earned shed loads of dosh and I now look forward to well deserved rest. I could say that I am actually grateful for what's happened to the UK contracting industry. It's made be get off my backside and do something quite radical.

[Lockhouse]

Waiting for client to confirm but assuming it's umbrella or inside, I'll MVL, go umbrella for a few months until the dust has settled then give notice, downsize and retire. The client has made me a crazy good perm offer too but I'm just buying time by talking. I hope they're happy with the extra tax they won't be getting.