End of IT contracting this June?

[malvolio]

And........ our mileages will vary as appropriate. Being extremely fortunate in having a skill set that is now almost impossible to acquire (took me 40 years) yet is still in demand (the demand pool has shrunk far less than the experience pool) I just get left alone. I'm engaged as a subject matter expert and that's all there is to it. I'm not saying I'm any different in all other respects to every other guy who spends between 6 months and 2 to 3 years on a project before moving on (all private sector, all blue chip clients). Yet, just like you say from your experience about D&C, I can say quite categorically that on big engineering projects if you aren't part and parcel of the team and behave in exactly that way, you are out through the door. Most large projects are manned almost entirely by contractors from project director down to clerks. Sometimes, a non team member type will be sacked at a couple of hours notice, sometimes at a weeks notice depending on the available replacements. On more than one occasion, I have been that replacement. My solution to being a SME but looking like an integral part of the team? Make sure everything is done well and before 99.9% of the time anyone even realises anything is to be done. That way, I am part of the team but never given any instruction on what to do or how to do it. Does that make sense?

That is rather the whole point of our argument. If keeping the customer happy and doing the job properly means pretending to be a part of their organisation, then that's what we'll do. It does not mean we are part of that organisation. We are hired to do a better job than their own staff and to be disposed of as soon as our job is done.

I find it exasperating in the extreme that people - other contractors as well as HMG - still think "fitting in" (to use a very loose term) to do the job properly and being an independent, self-managing entity are somehow mutually exclusive. They aren't, it's simply adopting a persona for a given purpose.

Or for another illustration: Robert de Niro? Oh yeah, he was that taxi driver bloke who lost the plot a while back, wasn't he.

[MrMarkyMark]

And........ our mileages will vary as appropriate. Being extremely fortunate in having a skill set that is now almost impossible to acquire (took me 40 years) yet is still in demand (the demand pool has shrunk far less than the experience pool) I just get left alone. I'm engaged as a subject matter expert and that's all there is to it. I'm not saying I'm any different in all other respects to every other guy who spends between 6 months and 2 to 3 years on a project before moving on (all private sector, all blue chip clients). Yet, just like you say from your experience about D&C, I can say quite categorically that on big engineering projects if you aren't part and parcel of the team and behave in exactly that way, you are out through the door. Most large projects are manned almost entirely by contractors from project director down to clerks. Sometimes, a non team member type will be sacked at a couple of hours notice, sometimes at a weeks notice depending on the available replacements. On more than one occasion, I have been that replacement. My solution to being a SME but looking like an integral part of the team? Make sure everything is done well and before 99.9% of the time anyone even realises anything is to be done. That way, I am part of the team but never given any instruction on what to do or how to do it. Does that make sense?

This +1

How my roles generally pan out these days.

[TheFaQQer]

IIRC, HMRC and HMG reckon it is close to 90% who should be IR35 caught. I have worked mainly on major engineering projects for most of my contracting career and I reckon they are not far wrong to be frank. With the vast majority pretending to be "real businesses". I know a very small minority of contractors who for sure are operating businesses as the man in the street would recognise it, but most are just a convenient sham.

The consultation papers when the PS changes were first discussed said that 90% of PSCs who should be inside IR35 weren't paying up correctly - but the press / MPs / blogs etc have generally interpreted this as "90% don't pay up".

When in coalition, Alexander led a review that found that in central government 90% of PSCs were paying the right amount of tax - a point that I made to HMRC directly.

[SueEllen]

The consultation papers when the PS changes were first discussed said that 90% of PSCs who should be inside IR35 weren't paying up correctly - but the press / MPs / blogs etc have generally interpreted this as "90% don't pay up".

When in coalition, Alexander led a review that found that in central government 90% of PSCs were paying the right amount of tax - a point that I made to HMRC directly.

Case of the left hand not knowing what the right hand is doing.

[SussexSeagull]

There is a fairly large HMRC office near me and the contractors in there are so far into IR35 they would need a map and compass to get out again.

Unfortunately a lot of current contracts, in the public and private sectors, fairly much demand the client has direction and control but the market has got itself into it's current state where clients don't want full time staff and fixed term contracts don't attract experienced people.

[SueEllen]

There is a fairly large HMRC office near me and the contractors in there are so far into IR35 they would need a map and compass to get out again.

Unfortunately a lot of current contracts, in the public and private sectors, fairly much demand the client has direction and control but the market has got itself into it's current state where clients don't want full time staff and fixed term contracts don't attract experienced people.

So you have done some work for HMRC in that office then?

[SussexSeagull]

So you have done some work for HMRC in that office then?

No but I know people who have and worked with them on other things.

I assume this might be about to change with the IR35 changes but they tend to bring in people who have worked for them before so it tends to be something of an old boys (and girls) club where you have to know someone to break in. I had a phone interview with them years ago and was beaten by someone who was a personal friend of one of the other contractors doing the interview.

In terms of working practice other than being paid differently it basically sounded like they were a member of staff e.g. clocking in and out and contributing to permanent staffs appraisals.

I think the IR35 public services changes have been very clumsily implemented but I do think cosy little cartels like this did need breaking up.

[SueEllen]

No but I know people who have and worked with them on other things.

I assume this might be about to change with the IR35 changes but they tend to bring in people who have worked for them before so it tends to be something of an old boys (and girls) club where you have to know someone to break in. I had a phone interview with them years ago and was beaten by someone who was a personal friend of one of the other contractors doing the interview.

In terms of working practice other than being paid differently it basically sounded like they were a member of staff e.g. clocking in and out and contributing to permanent staffs appraisals.

I think the IR35 public services changes have been very clumsily implemented but I do think cosy little cartels like this did need breaking up.

Why the feck are they doing staff appraisals? Are they mad?

Oh some of the government departments in London and the SE are paying around 75K permie for Digital Developers due to the various bits they add to the salary.

[SussexSeagull]

Why the feck are they doing staff appraisals? Are they mad?

Oh some of the government departments in London and the SE are paying around 75K permie for Digital Developers due to the various bits they add to the salary.

I suspect part of the problem with the HMRC is they are judging everyone by their own standards.

They do struggle to recruit local permanent staff as well. In fact I might have to look into it if my prospects don't improve!

[Regur]

Well after 22 years as a contractor - I've finally chucked in the towel and gone permie. Well done Hector - I'll let you win this one.

I think you'd be a fool not to expect drastic and damaging changes to happen over the next 18 months to contracting within the UK in all industries. With the political uncertainty in the next couple of years I think I'd rather jump now and move to somewhere I want to go rather than be pushed later on.

The ride was fun whilst it lasted though. Feels a bit weird to not be invoicing every week but I'm sure the paid holidays will ease me through the pain of not feeling elitist and looking down with disdain at the permanent members of staff anymore

For me, the positives of contracting have slowly been ground down and are now outweighed by the negatives, and as for those of you who are going to stand firm and continue, I salute you - but I think the writing is on the wall....