Will IT contractors be considered permanent employees after one month on site?

[MrMarkyMark]

I am a bit mystified that only I can see this, and that every other contractor here seems to be pontificating about how impossible this is, or that it is the end of contracting as we know it.

All they have to do is add a criterion to the current IR35 legislation, that any time with a client after the first month counts as caught.

Blimey, what a, completely, terribly, stupid, idea, maybe no one else wishes to "see it" as you do .

Why, in your opinion, should people be caught after a month has elapsed?

Hardly living up to your user name, either

[pjt]

Contractors will still run companies even if 100% of income is IR35-caught, as in that scenario it's still a better option than using a brolly.

Even in that scenario with the changes to T&S & IR35 some contractors will not be able to go on. I'm talking here about the Monday - Friday away from home guys who shell out a lot weekly on getting and staying somewhere for a gig.

Your right though the rest will probably just carry on with a much smaller take home though still higher than going permie!

I hate to admit it but I'v done the sums and working close to home should be fine, working away I wont touch. Problem I have is most of my gigs are away! So lots of bench time ahead with me then having to work out if the increased bench time pushes me into permie.

[LondonManc]

This will be trivial for government to implement, and will have no impact on clients or agencies, and will have no effect on the existence or extent of contracting, other than knock-on effects stemming from net-of-tax pay being considerably lower.

I am a bit mystified that only I can see this, and that every other contractor here seems to be pontificating about how impossible this is, or that it is the end of contracting as we know it.

All they have to do is add a criterion to the current IR35 legislation, that any time with a client after the first month counts as caught.

The bit about clients having to take people on payroll is I presume just journalists (or whoever is briefing them) being a bit clueless.

If you know exactly how it's going to be implemented, please enlighten us. Then we can pick holes in your unique vision.

[MrMarkyMark]

Listening to some here, they are prepared to roll over, get their bellies tickled, prior to lubing up, whilst bending over, before handing over everything to HMRC.

Pathetic

[pjt]

Listening to some here, they are prepared to roll over, get their bellies tickled, prior to lubing up, whilst bending over, before handing over everything to HMRC.

Pathetic

Not at all. The problem is the options are very limited. Other than a token letter to our MP, and raising the risk with clients what can we do. If they really want to push this through they will.

[topgazza]

You make a good point but how ludicrous and unfair is it to pay employers NI and corp tax when by any interpretation your are Ltd in name only. We know that already of course but I for one would go permanent. As the difference over a permanent employee with holiday pay, sick pay, bonuses, pension contributions, implied security of a job and all the other nice to haves not forgetting the stress and hassle of running a Ltd company would disappear IMO. Or day rates will have to go up by 50%.... yeah right

[MrMarkyMark]

If they really want to push this through they will.

Having been doing this for longer than 5 minutes, I would suggest they won't.
Completely unworkable.

[pjt]

Having been doing this for longer than 5 minutes, I would suggest they won't.
Completely unworkable.

Is it though. As IR35 avoider and some others have suggested the probably method of carrying this out will be for us all to be forced inside IR35 after 1 month. In effect nothing will change for anyone other than agents will be determining our IR35 status and we will be stuck inside. Client's etc will carry on paying the same rates and getting pretty much the same service in return.

Sure some may go permie which may have a long term effect of rates going up but I'd be surprised when it comes to it how many will actually go permie. The amount most will clear even within IR35 is likely to be much more than a permie salary.

[MrMarkyMark]

You, sir, are on the wrong drugs .

Is it though. As IR35 avoider and some others have suggested the probably method of carrying this out will be for us all to be forced inside IR35 after 1 month.

Firstly, it takes at least a month to get people up and running.
Secondly, in banking, or security roles, it takes 5 weeks, or so, just to get clearance.
Thirdly, look at the stupidity of the tax credits situation, i.e. Georgie can suggest what he likes, but, it won't come to pass.

This month suggestion is unworkable and will be kicked into touch by big business.

Ill ask, my question, again.
Please remember contract length has never had any bearing on IR35, before you answer.

Why, in your opinion, should people be IR35 caught after a month has elapsed?

As you are from Scotland, maybe, lobby the SNP about it

[topgazza]

Answer: So they can raise millions doing next to nothing, more in tax with no appeals. Simples.... lazy legislation but deceptively simple to apply on the face of it. It really only affects the contractor so they probably think its would get little resistance in reality. Real affect would take longer to come in but agencies would need to do nothing with rates... its not their problem.

There is a need to change the law so being a sole trader is easier with no implications for agencies or clients. But they're not going to do that as its moving the goal posts and self defeating for HMRC. Worrying but interesting times. They aren't"destroying" the contract market in their little world just raising more revenue but leaving the risk in the risk & reward scenario and also putting a huge dent in the reward....


They could remove corp tax and employers NI from any Ltd company in IR35, which always seemed illogical to me anyway, to reflect that they are ltd in name only because its demanded by the agency