What is everyone going to do assuming HMR&C and Osborne get their way?

[alphadog]

The conjecture round here based on articles in unreadable newspapers astonishes me.

Things will never be as bad as suggested; the £400 million being bleated about is nonsense. Yes, they may gain it in PAYE thefts but how much will they lose from agencies/consultancies who go out of business, the impact that could potentially have on the benefits system etc etc

I suggest everyone calms down a bit and wait and see.

Seems like conjecture is all we have got. No point attending any govt committee meetings to put in your two cents worth or signing up for petitions etc, because they just do whatever they want to do anyway.

So, it's going to be a case of conjecture, followed by instant change by govt edict. Possibly even backdated, depending on how they are feeling.

[VectraMan]

Nobody will be on the client's payroll. That's a nonsense. But it'll probably mean having to give in on IR35, or maybe even being forced to use an approved umbrella rather than our own Limiteds. Either way it's still worth contracting just as it is to all the thousands that already use umbrellas.

[BolshieBastard]

Why do you think this? The demand isn't going anywhere. Why would they not simply engage you via their newly formed brolly company. Everything is PAYE so no comeback on them or the client.

Its because many agencies already operate their own 'permie type' contractor model and their pay is a pittance compared to today's day rate.

Neither are they going to operate a two tier system where their existing 'permie type' contractor gets a lower rate of pay while the 1 month and switch contractor enjoys a far higher rate \ salary \ call it what you will.

[GJABS]

Would we not just be on zero-hours contracts, with no holiday pay or other benefits.
Would not the only effect be that our gross pay would go down by the amount of employer NI, more employee NI, and more limited ability to claim expenses.

[Pondlife]

Its because many agencies already operate their own 'permie type' contractor model and their pay is a pittance compared to today's day rate.

Neither are they going to operate a two tier system where their existing 'permie type' contractor gets a lower rate of pay while the 1 month and switch contractor enjoys a far higher rate \ salary \ call it what you will.

Yes but that 1st tier is for the supply of receptionists and office temps. The demand from Big Co for PMs/BAs/Devs etc isn't going away so why do people assume the cost of hiring this skill will massively decrease based on the method of end taxation. It won't IMHO.

[Lightwave]

I'm going to take some time off next year anyway.
Hoping to keep my current client part time WFH, see what else is out there.
If that's not an option, I will be on the beach for the spring and summer.

Adapt and survive.
But I've always been aware that the good money of contracting might not always be there, so I've never over-committed myself financially.
I'm a hardware design engineer, there are plenty of permy hardware designers just as good as me earning mediocre salaries, I can go back to that and be comfortable as I will have a trivial mortgage and some savings. Apart from council tax, all my outgoings are probably below average.

Some contractors earn great money for 3 years and think they're entitled to it for life, scary mortgages, flash cars on HP and all that.
I've seen a few take financial kickings before, not pretty!

Maybe look to work abroad again after a while.
Maybe get serious about the plan B business, been looking into buying something every time I'm between contracts, contracting has always been lower risk until now.
But contracting in engineering is not what it was, I find it harder every year to find the enthusiasm for badly run tin-pot development jobs.

[Lightwave]

Yes but that 1st tier is for the supply of receptionists and office temps. The demand from Big Co for PMs/BAs/Devs etc isn't going away so why do people assume the cost of hiring this skill will massively decrease based on the method of end taxation. It won't IMHO.

I think this is partly about HMG trying to massively reduce the public sector spend on interims, con-sultants and so forth.
Chucking a grenade into that market makes a lot of sense in terms of the deficit.

[MarkT]

The tories don't like BTL landlords or Syrian refugees though.

Can we stay vaguely on some sort of sensible discussion though, it's quite interesting.

Exactly - what Syrian refugees have to do with PSCs I have no idea. Perhaps the slavers sending them over are disguising their employment or using an MSC?

[MarkT]

Would we not just be on zero-hours contracts, with no holiday pay or other benefits.
Would not the only effect be that our gross pay would go down by the amount of employer NI, more employee NI, and more limited ability to claim expenses.

From what I have read we'd be caught by IR35. So it'd be easier to just go through an umbrella, we'd probably still get T&S as we'd no longer be PSCs. That's probably it. It'd cost me £2,500 a month, but I'd survive, just about.

I can actually see rates go up as less people may want to contract (some will retire, choose a plan B, go perm for the security etc) A top tier developer who is happy to do a 6 month gig is going to command a higher fee, because there will be less of them about.

Capita and the like will be rubbing their hands with glee and that is really what this is about for me.

Edwarding master/slave employer/employee stuff. Too many plebs aren't beholden to Eton educated types. It must stop!

[Martin Scroatman]

From what I have read we'd be caught by IR35. So it'd be easier to just go through an umbrella, we'd probably still get T&S as we'd no longer be PSCs. That's probably it. It'd cost me £2,500 a month, but I'd survive, just about.

I can actually see rates go up as less people may want to contract (some will retire, choose a plan B, go perm for the security etc) A top tier developer who is happy to do a 6 month gig is going to command a higher fee, because there will be less of them about.

Capita and the like will be rubbing their hands with glee and that is really what this is about for me.

Edwarding master/slave employer/employee stuff. Too many plebs aren't beholden to Eton educated types. It must stop!

: FEWER

..and what's Edward got to do with it?