Ir35 2020

[novaprospect]

Hello friends, apologies for the thread hijack but this seems as good as place as any for this question and I'm not sure its worthy of a new thread...

First time contractor, just signed first contract. Agency (call themselves a 'consultancy') was very surprised by my decision to use an Umbrella and gave me an almost "your loss buddy" vibe down the phone.

Having received and signed the contract I am 100% confident it wouldn't pass an IR35 check, not even close. Even based on what little I know. My role is also pretty much undefined, I'm just another body on a huge project that needs more bodies.

There are multiple other contractors from the same agency working for this client on this project, I'm told all are using LTD companies deeming themselves outside IR35. It also appears the vast majority of IT Contractors that I've met are deeming themselves outside IR 35 (indeed many I asked had little clue what it is/means).

So to my question... am I being an idiot by deeming myself outside and going through an umbrella? It feels somewhat like I'm the schmuck whose listening to the rules whilst everyone else takes home another £2k a month. Or am I going to be smug when HMRC bills thousands of contractors for unpaid tax?

Somehow the latter feels unlikely...

[ChimpMaster]

well.. my current contract ends July 2019.
i have just been asked if i wanted to keep on working with the organisation after that contract (<2yrs)- in another role/ part of the country on a different project - but with this all going on - i might just start asking around for work in the ME..

Take an extension to March 2020

[northernladuk]

I clearly am a contractor. My job description says I am.

If that doesn't prove it 86 other posts will.

[fiisch]

If that doesn't prove it 86 other posts will.

Surely you can spot a leg pull that obvious?!

[northernladuk]

Surely you can spot a leg pull that obvious?!

Not with you it's not. Best drop the leg pulling. It's not helping you.

[LondonPM1]

Not with you it's not. Best drop the leg pulling. It's not helping you.

Back to the topic - The only saving grace from all of this is that things become inside IR35 but somehow rates increase to offset the extra taxation

Personally I dont see it so I think most of the contractors at the big banks are finished but time will indeed tell

This is the single biggest change I have seen for ten years and some people really want to see IT contractors finished.

[northernladuk]

Back to the topic - The only saving grace from all of this is that things become inside IR35 but somehow rates increase to offset the extra taxation

Personally I dont see it so I think most of the contractors at the big banks are finished but time will indeed tell

This is the single biggest change I have seen for ten years and some people really want to see IT contractors finished.

But again.. Exactly the same was said when IR35 came in, everytime it was reformed and when the Public Sector changes hit yet contracting still goes on, albeit with a fight on.

There are some big guns fighting this and its up to all of us to do our part. New contractors just giving up on the very day it's announced helps nothing. This suits no one except HMRC so there is a lot of pressure and time to work around it.

Instead of (incorrectly) forecasting the end of contracting as you known it for a short time, get involved and try make a difference.

[cmscotland]

Back to the topic - The only saving grace from all of this is that things become inside IR35 but somehow rates increase to offset the extra taxation

Personally I dont see it so I think most of the contractors at the big banks are finished but time will indeed tell

This is the single biggest change I have seen for ten years and some people really want to see IT contractors finished.

You're probably right about the big banks, their need for a flexible workforce will still exist but they'll just go to consultancies instead (and probably end up paying more per day).

[electronicfur]

But again.. Exactly the same was said when IR35 came in, everytime it was reformed and when the Public Sector changes hit yet contracting still goes on, albeit with a fight on.

There are some big guns fighting this and its up to all of us to do our part. New contractors just giving up on the very day it's announced helps nothing. This suits no one except HMRC so there is a lot of pressure and time to work around it.

Instead of (incorrectly) forecasting the end of contracting as you known it for a short time, get involved and try make a difference.

But when the public sector changes hit, the one public sector client I had just had a blanket rule for everyone, even though I was very clearly outside IR35. My cabinet-level MP didnt really care about my complaints. The simplest solution was just to stop all public sector work, as it was not worth the hassle, and there seemed to be little that could be done about it...

[LondonPM1]

But when the public sector changes hit, the one public sector client I had just had a blanket rule for everyone, even though I was very clearly outside IR35. My cabinet-level MP didnt really care about my complaints. The simplest solution was just to stop all public sector work, as it was not worth the hassle, and there seemed to be little that could be done about it...

Exactly - Big companies wont want the hassle of giving outside IR35 contracts in much the same way as they insist on using agencies even if you were referred by an existing employee

Its even made it to BBC Budget 2018: Contractors face higher tax and NI payments - BBC News