Ir35 2020

[NorthWestPerm2Contr]

I currently have 2 clients simultaneously. One of them has just come to me and said they need to discuss IR35 legislation and putting me onto PAYE.... They have been advised by their accountant to put me onto the payroll

[saptastic]

I currently have 2 clients simultaneously. One of them has just come to me and said they need to discuss IR35 legislation and putting me onto PAYE.... They have been advised by their accountant to put me onto the payroll

Have they said why? Is it private sector?

[Hobosapien]

Numpty clients and their accountants are why the IR35 battle will always be a fight you didn't even think you were in.

Needs proper b2b contracts where your company and not you as an individual are named as the supplier. They can't put a company on the payroll though some may try.

Avoid it by changing your name to 'Fred Bloggs Ltd' that happens to be same name as your Ltd.

[NorthWestPerm2Contr]

Have they said why? Is it private sector?

yes they are private sector. They don't want to take the risk, that's all it comes down to..... I'll be saying something about that if it comes to it. Luckily I've been working on plan B now for a solid 2 years and hopefully within 6 months can go full time on it. Screw contracting. Government did enough damage with the dividend tax and this is an additional step too far. I hope they enjoy losing all their tech talent in just over a year's time.

[Hobosapien]

Luckily I've been working on plan B now for a solid 2 years and hopefully within 6 months can go full time on it. Screw contracting. Government did enough damage with the dividend tax and this is an additional step too far. I hope they enjoy losing all their tech talent in just over a year's time.

Good for you. We all need a plan B and there's still time to get one up and running before the 'inevitable' implementation of public sector IR35 rules in the private sector.

Maybe there are some plan B's that are too ambitious for one and could do with a pool of CUK contractors to chip in.

Maybe it's time for a CUK Consultancy Service where proper b2b contracts allow easy substitution of available contractors assessed to have the necessary skills, and operates as a union to protect our rights, and also monopolise the market by reducing the number of contractors available freelance. Bonus being more crappy agencies would be frozen out into obsolescence. What's not to like?

[JohnM]

Not sure why everyone is getting so upset about this. At the end of the day contract resource is essential for IT businesses, given the nature of IT projects etc. You name me a digital agency that could function efficiently without contractors

All that will happen is contracts and ways of working will be changed to make them outside the IR35. Yes some big companies may implement the blanket approach the public sector have taken and try and insist all contracts will be inside but then just don't work for these companies, they will soon fall back into line when they can't get good quality resource for projects and it starts costing them money.

A lot of contractors will go permanent over the next 18 months, this may actually be a positive with competition for assignments decreasing and rates going up.

Companies will need good contractors and will do whatever they need to do in order to get them, don't worry, nothing in effect has changed. Contracts will be rewritten as fixed fee's rather than day rates with money paid per day, you will always use your own equipment and there will be a lot more working from home these are just three of the more obvious changes however the statement earlier in this thread that 90% of contractors will be inside is just plain ridiculous

I wouldn't be surprised if it was at least 50/60% of contractors remaining outside truth be told, they all have 18 months now to reword contracts and ways of working

[Old Greg]

In other EU nations you seem to see small Co-op entities (companies?) where a bunch of guys band together in a loose sense - they can work independently.

I think this is impractical in the UK as it ends up utilising alphabet shares and such dodgy things... how do they make it work in other countries (e.g. Sweden)?

Sorry for the late response. I am looking at this in Ireland. It is possible because it is disadvantageous to take the CT + divis route. It is also not worth leaving money in company at year end. Instead a director with a controlling interest can pay the equivalent of Class whatever (self employed NIC) instead of employers and employees NIC. You can therefore eat what you kill and take contract income as salary without messing about with alphabet shares.

[RobScott]

It is good thing!

I think it is a good thing!
Contractor will get betters rates since firms still will not add permanent employees due to over heads and labour law.
Atleast we can make money without worrying about Taxman

Being outside IR35 and the pressure everyday of being sent a notice by HMRC is a pain and increase BP and Diabetes risk ... health is wealth

[RobScott]

Will there be retrospective tax?

will the taxman look at last 10 years once we moved from Permanent to Contract?

[northernladuk]

I think it is a good thing!
Contractor will get betters rates since firms still will not add permanent employees due to over heads and labour law.
Atleast we can make money without worrying about Taxman

Being outside IR35 and the pressure everyday of being sent a notice by HMRC is a pain and increase BP and Diabetes risk ... health is wealth

Can we ban this tedious sockie please?