What do you think will happen to agencies next April?

[TheFaQQer]

1. Rates go up significantly for contractors that take contracts involving overnight stays and weeks away from home; or contractors only consider local gigs where expenses are not that high (which causes all kinds of problems for clients in the arse end of nowhere)

Main concern here is that a lot of clients perceive contractors to be expensive anyway, and if I explained to them that my guys want a rate rise as they cannot claim expenses, they simply would not give a damn, and not change what they pay.

2. The entire model changes, and we charge an introductory fee (no idea how we would work this out, say 10% of the entire value of the contract?), and then we leave the contractual affairs between client and contractor to themselves

Can't see either of those happening for agencies.

If you have to travel and stay over, then you will either (a) stop doing that; (b) increase the rate to compensate; or (c) already be on a high enough rate that you can suck it up.

I don't believe that clients are going to increase rates (certainly not in the short to medium term), because as far as they are concerned it's nothing to do with them - they need a flexible resource, so be flexible. So that leaves the market in certain areas drying up (good for those that already live in areas where people don't want to travel though), or sucking it up.

I suspect more of the latter than the former.

[Milkyway]

I thought there was going to be some hope at the end of the tunnel... but going through the various posts here I see this:

1. Clients won't budge for any rate increase etc., irrespective of what the law changes will be (its buyer's market)
2. Agencies won't change (many have asserted this), and why should they anyway. They don't want to charge more to their customers.
3. Contractors: I see most of us saying we will just whine and take the hit.

Great. If I was HMRC or HMG, I would simply put through all these changes (divi, T&S, IR35 complete change) as soon as possible and get the industry/contracting business model closed for ever, without any outcry etc... since its very very clear its just a "contractor's problem" now. As for clients - they don't give a toss about "top quality work" - so they will find cheap work force one way or the other, at their cost terms (through offshore, onshoring offshore people, etc.), agencies will do whatever clients want.

And the govt knows we (contractor - the sellers) will as usual blame it all on the foreigners , and whine about it and carry on.

Go for it HMRC/HMG. Its all yours now!! Kill this market happily!
There is no way the contractor's forum or groups like IPSe etc. that can do anything about it.

[LondonManc]

Can't see either of those happening for agencies.

If you have to travel and stay over, then you will either (a) stop doing that; (b) increase the rate to compensate; or (c) already be on a high enough rate that you can suck it up.

I don't believe that clients are going to increase rates (certainly not in the short to medium term), because as far as they are concerned it's nothing to do with them - they need a flexible resource, so be flexible. So that leaves the market in certain areas drying up (good for those that already live in areas where people don't want to travel though), or sucking it up.

I suspect more of the latter than the former.

Or (d) downgrade your hotel and stick to offpeak travel where possible

[DaveB]

Depending on how it all shakes out my current thinking is that I will start quoting "Rate + T&S" for new gigs. This is just what the big consultancies do now anyway so brings things in line with them. My day rate is still a fraction of what they would charge to put in someone wth less experiance.

If push comes to shove I am one of those in a position to absorb the costs if I have to, but that doesn't mean I won't try and avoid that if I can.

[diseasex]

Or (d) downgrade your hotel and stick to offpeak travel where possible

As far as I know dividend increase is "sure" but they are still discussing T&S so by no means its decided? So what are we discussing here really?
Or something changed from last time I checked?

[Milkyway]

As far as I know dividend increase is "sure" but they are still discussing T&S so by no means its decided? So what are we discussing here really?
Or something changed from last time I checked?

Well, if you look at it from my point of view (ref: my post above), you will see that the T&S and IR35 sweeping changes, both can be passed as law easily without any big deal - since there is no concern from any of the main constituents of the market (i.e. Clients and Agencies). The only one to moan is the contractors themselves, and we are ready to suck it up and just continue moaning.

Honestly, if you were the HMG, do you think there is any incentive for you to not pass through these "discussion" materials into law?
I don't see one!

Anyway, the blame will be on the foreigners! .. so what is the big deal! That will be their approach! And to TBH, if I were HMG, I would do the same!

[LondonManc]

As far as I know dividend increase is "sure" but they are still discussing T&S so by no means its decided? So what are we discussing here really?
Or something changed from last time I checked?

Read the OP. I did.

[cojak]

Depending on how it all shakes out my current thinking is that I will start quoting "Rate + T&S" for new gigs. This is just what the big consultancies do now anyway so brings things in line with them. My day rate is still a fraction of what they would charge to put in someone wth less experiance.

If push comes to shove I am one of those in a position to absorb the costs if I have to, but that doesn't mean I won't try and avoid that if I can.

Yep, and if you cap the T&S to a reasonable limit it will be no different to consultancies.

[SueEllen]

@czakky I've been called up by 2 agencies who use the second model but they mainly work in mainland Europe.

There must be contractual terms which means if the contractor is extended the agency gets more money.

[SlipTheJab]

Agree I am on 100 notes less a day now compared to my London Rate (my choice), bonus is I have a 5 second commute as I WFH, get to see my kids and am less stressed. If I do go back to London it will cost me 90 quid a day which I will factor into my rate x2 as its not just the money but time also, in fact not being able to claim it back means I probably won't bother.