Reply to: Many people getting offered higher day rate to work Inside IR35

[Smackdown]

I'm personally seeing the same rate for inside/outside of IR-35 in Bristol. They mostly want to pay £350 either way. Seems like a much better deal to get something outside of IR-35.

Feels like BS legalisation. You're not really an employee if they can get rid of you within a week, inside or outside of IR-35.

And I was pointing out why people may stay even if the rates were slightly lower - oh and its nice to see that you rise to the JSA bait every time we hit you with it....

It does seem very mean spirited. You pay tax for it so you should get it paid back. I personally wouldn't bother simply due to the sum of money being very small but it might go further for some other people.

[psychocandy]

And I was pointing out why people may stay even if the rates were slightly lower - oh and its nice to see that you rise to the JSA bait every time we hit you with it....

I agree - as with all gigs, take it on its own merits. To be honest, I dont think JSA would ever sway me either way - its only £75!

Yes yes :-) You do know I havent claimed it for years??

[eek]

Wrong. In your haste to have a dig you made a big mistake. 10% may be affordable, each to his own. But I said BREAK EVEN. :-)

But yes I would agree that each should be taken on its merits.

BTW - you can harp on about JSA until the sun implodes but I'll still claim it in future if I decide its worth it.

And I was pointing out why people may stay even if the rates were slightly lower - oh and its nice to see that you rise to the JSA bait every time we hit you with it....

[psychocandy]

depends on how much bench time you can afford - most people aren't willing to claim job seekers allowance to tide themselves over.

Sometimes a 10% cut is better than leaving and hoping for something more especially when the other options have additional costs...

Wrong. In your haste to have a dig you made a big mistake. 10% may be affordable, each to his own. But I said BREAK EVEN. :-)

But yes I would agree that each should be taken on its merits.

BTW - you can harp on about JSA until the sun implodes but I'll still claim it in future if I decide its worth it.

[psychocandy]

If that's true then this is a success story for HMRC.

but not for other departments who now have hassle and extra cost...

[northernladuk]

Bottom line

Client is 35% worse off.
Client now potentially has less contractors to choose from (i.e. only worth it for local people)
.

And the quality of their contractors has hit rock bottom...

[eek]

Would suggest you need 35% to break even if you're local. A lot more than that if you're travelling/staying away.

depends on how much bench time you can afford - most people aren't willing to claim job seekers allowance to tide themselves over.

Sometimes a 10% cut is better than leaving and hoping for something more especially when the other options have additional costs...

[TheFaQQer]

HMRC/government now collecting shedloads of extra tax

If that's true then this is a success story for HMRC.

[psychocandy]

so enough for local people to roughly break even and continue in contract but not enough for those who live further away to stay....

Would suggest you need 35% to break even if you're local. A lot more than that if you're travelling/staying away.

[psychocandy]

Yep me.

Current client - LOT of contractors left beginning of the year when client decided they were going to be inside IR35 and no rate rise was offered. Also, I imagine the risk of retrospective action would have been an issue.

After a month or two, client thought feck what are we going to do. 35% increase to rates was offered to all new contractors. Which included me when I started in April. Yes its hassle to go umbrella but my take home is pretty much the same as before.

Local gig for me as well. Not sure if its going to be attractive to people who used to stay over/travel a long way - after all no expenses claim any more. Probably good news for local candidates like me where its not an issue (12 miles for me).

Bottom line

Client is 35% worse off.
Client now potentially has less contractors to choose from (i.e. only worth it for local people)

Agency is better off. They've now got an extra 35% to take a cut of.

I'm financially about the same. Just a bit of hassle with having to use umbrella.
I know client is struggling to get people so chance of long gig looks very good (they asked me if I "minded" going through SC within a week of me being here).
My pension is now doing well. Worked out (if you can get an umbrella to do it as salary sacrifice) that for every £200 I pay into pension would be less than £100 in my pocket.

HMRC/government now collecting shedloads of extra tax (of course paid for by client). Out of one government pocket and into another with a bit of fannying about in the middle.

Pointless? Totally.

[eek]

Yup. Hammond can take the glory for increased tax take, and when each PS dept spends more, he can give them grief for poor efficiency. So he/govt look ace, whilst giving further evidence of the need for more punitive cuts to PS.

In terms of what we've seen, of our PS clients, most have seemingly been treated as inside IR35 but also given circa 20% day rate hikes to compensate. Not as much as 50% tho.

so enough for local people to roughly break even and continue in contract but not enough for those who live further away to stay....

[Maslins]

If it means the HMRC reported tax figures are up they don't really care how they arrived there.

Yup. Hammond can take the glory for increased tax take, and when each PS dept spends more, he can give them grief for poor efficiency. So he/govt look ace, whilst giving further evidence of the need for more punitive cuts to PS.

In terms of what we've seen, of our PS clients, most have seemingly been treated as inside IR35 but also given circa 20% day rate hikes to compensate. Not as much as 50% tho.

[youngguy]

I've certainly seen PS roles fairly consistently higher - 10 to 15% , in the last few months so it does appear that rates are climbing up a bit.....but I haven't seen anything like 50%

[Hobosapien]

If it means the HMRC reported tax figures are up they don't really care how they arrived there.

So like how silly house prices are just people paying each other a larger amount that cancels out to some degree, same for PS rate increases where the tax received gets fed back into the system to cover the cost.

Everything is the same except the numbers look bigger.

[Concorde]

Many people getting offered higher day rate to work Inside IR35

I've just spoken to someone who's getting £50 per day more - 10% uplift? Not massive but this gov dept is cash strapped and has 65% freelance workforce in some areas. The nuts? A an unlawful blanket IR35 policy is creating a spectacular own goal!