Reply to: Direct approach

[Lance]

Thanks for the additional info, Lance.
What's the application procedure and time to complete/get decision? It seems to be via the app (post dl), but can't find out much info beyond that.

Took a day or two. It was less than a year ago yet I can’t remember the process.

Whereas I still remember the process for applications 5 years ago that were painful.

[SteelyDan]

For what it’s worth, I find them fine.
No number to ring so it’s all done as online chat. I prefer that to waiting 20 minutes anyway.
Max £10k transfer as well so large dividends or pension contributions need a little planning.
But it does what it says on the tin.

Thanks for the additional info, Lance.
What's the application procedure and time to complete/get decision? It seems to be via the app (post dl), but can't find out much info beyond that.

[Lance]

Direct approach

Thanks, not heard of them but I'll go check that one.

Edit: Just checked...some stinkingly bad reviews on Trustpilot.

For what it’s worth, I find them fine.
No number to ring so it’s all done as online chat. I prefer that to waiting 20 minutes anyway.
Max £10k transfer as well so large dividends or pension contributions need a little planning.
But it does what it says on the tin.

[SteelyDan]

Mettle was quick to setup and gives you FreeAgent.
Zero fees, but no FSCS protection.

Thanks, not heard of them but I'll go check that one.

Edit: Just checked...some stinkingly bad reviews on Trustpilot.

[Lance]

I need to quickly get a new business banking a/c (without too much faffing about) for this 3-monther (I closed the old one some time ago); is Starling still a good/recommended option? I need it to be non-fees/free banking.

Mettle was quick to setup and gives you FreeAgent.
Zero fees, but no FSCS protection.

[SteelyDan]

I need to quickly get a new business banking a/c (without too much faffing about) for this 3-monther (I closed the old one some time ago); is Starling still a good/recommended option? I need it to be non-fees/free banking.

[Lance]

If a company were to make a blanket determination that all contractors were outside IR35 and some were inside, that would be a problem, but I don't see that it works the other way around.

It’s not ‘blanket’ in that scenario.

[BlasterBates]

A blanket determination that everyone is inside is very different from a blanket ban on PSCs. The later is justifiable the former isn't

If a company were to make a blanket determination that all contractors were outside IR35 and some were inside, that would be a problem, but I don't see that it works the other way around.

[eek]

The relationship with this contract goes like this: MyCo>Consultancy (not an agency>Client (Gov dept).

It transpires that the end client has advised that, post-April, they will not deal with PSCs operating as Ltd. Cos, even via a Consultancy such as my current arrangement. The Gov Dept concerned are blanket-determining all contractors Inside wef April, so not a lot can be done, it seems the position is immovable.

With this initial 3 month contract, I have a choice come April to either continue the work as Inside, or ditch it, & the Consultancy concerned are understanding of this. I'm just going to enjoy the 3 months & gauge things nearer this initial contract end point. It's potentially a long programme, and even the inside rates are decent (although I baulk at the amount of tax), but given where contracting is now, and where it's heading, I'll certainly give the inside work some serious thought. I'm thinking 'gift horse, mouth, looking'.

Naturally I'll be keeping one eye out on any outside opportunities, but then again so will thousands of other contractors. Like many, I've struggled this year, so this is a chance to get back on an even keel.

A blanket determination that everyone is inside is very different from a blanket ban on PSCs. The later is justifiable the former isn't

[SteelyDan]

The relationship with this contract goes like this: MyCo>Consultancy (not an agency>Client (Gov dept).

It transpires that the end client has advised that, post-April, they will not deal with PSCs operating as Ltd. Cos, even via a Consultancy such as my current arrangement. The Gov Dept concerned are blanket-determining all contractors Inside wef April, so not a lot can be done, it seems the position is immovable.

With this initial 3 month contract, I have a choice come April to either continue the work as Inside, or ditch it, & the Consultancy concerned are understanding of this. I'm just going to enjoy the 3 months & gauge things nearer this initial contract end point. It's potentially a long programme, and even the inside rates are decent (although I baulk at the amount of tax), but given where contracting is now, and where it's heading, I'll certainly give the inside work some serious thought. I'm thinking 'gift horse, mouth, looking'.

Naturally I'll be keeping one eye out on any outside opportunities, but then again so will thousands of other contractors. Like many, I've struggled this year, so this is a chance to get back on an even keel.

[1manshow]

What do they think will change around the terms and working practises that will affect the status?

If they say nothing will change, then ask why they need to review in April. All they'll need to do is document their decision in a SDS with clear reasoning.

Although you make complete sense, the truth is that HMRC will target you even if you think you are outside IR35 and heck maybe even if they do - I mean they have already shown practice of just accepting people to pay more money to them without them being classified as inside. Many companies just don’t want the hassle of dealing with HMRC, not that they believe the role might be inside. I had a colleague go through a nasty 2 year “investigation” where they just tried their luck to get him to give in, but in the end they failed to and he was accepted as outside. This also required the client to get involved and despite being found innocent, I believe this experience is a contributor to them deciding on all perm/inside post April.

[jayn200]

25% is not enough.

Lets say you are on £500 a day outside.

You might need to increase to between £670 perhaps even £700 a day (if you have high expenses), which is a 35% to 40% increase.

I think £700 a day nets about £395 when inside IR35.

£670 nets just £380 a day when inside.

I doubt they will offset it completely. Probably land somewhere in the middle unless it's already at their max budget as already mentioned elsewhere.

The contract I'm on now I got beginning of new year. They gave me an outside determination. I agreed with them if relationship changes and it goes inside i need 20% higher rate. I don't expect them to make up the full amount but it keeps them straight. It's now in their best interest to work to keep me outside.

[SteelyDan]

25% is not enough.

Lets say you are on £500 a day outside.

You might need to increase to between £670 perhaps even £700 a day (if you have high expenses), which is a 35% to 40% increase.

I think £700 a day nets about £395 when inside IR35.

£670 nets just £380 a day when inside.

Yes you're not too far off with your lower set of figures
There are no expenses as it's fully remote until at least June 2021

[eek]

25% is not enough.

Lets say you are on £500 a day outside.

You might need to increase to between £670 perhaps even £700 a day (if you have high expenses), which is a 35% to 40% increase.

I think £700 a day nets about £395 when inside IR35.

£670 nets just £380 a day when inside.

Up lift actually doesn't matter as most people won't be seeing any uplift.

The actual issue is lack of expenses for the commute to the client unless it's 100% from home.

[Fraidycat]

So, just had a call with these guys & sounds promising. They're a Tech consultancy providing services to a gov org. Initially it's outside, good rate though, probably one of my highest. Client seems to be insisting post-April that all contractors should be inside. Chap I've been talking to (HR) suggests an uplift of 25% on current rate. Is that calc about right? Can't believe how much tax etc.!!

25% is not enough.

Lets say you are on £500 a day outside.

You might need to increase to between £670 perhaps even £700 a day (if you have high expenses), which is a 35% to 40% increase.

I think £700 a day nets about £395 when inside IR35.

£670 nets just £380 a day when inside.