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Pondlife
25th January 2017, 11:44
UK government departments are advising IT contractors to hike their fees by a fifth in order to avert an exodus of self-employed techies that will be hit by a forthcoming tax clampdown, multiple sources have told The Register.

UK.gov tells freelance techies to slap 20 per cent on fees as IR35 tax hike looms • The Register (http://www.theregister.co.uk/2017/01/25/gov_advising_it_contractors_to_hike_fees_by_20_per _cent_to_avoid_ir35_exodus/)

malvolio
25th January 2017, 11:51
UK government departments are advising IT contractors to hike their fees by a fifth in order to avert an exodus of self-employed techies that will be hit by a forthcoming tax clampdown, multiple sources have told The Register.

UK.gov tells freelance techies to slap 20 per cent on fees as IR35 tax hike looms • The Register (http://www.theregister.co.uk/2017/01/25/gov_advising_it_contractors_to_hike_fees_by_20_per _cent_to_avoid_ir35_exodus/)

Yeah, that will work... :tumble:

eek
25th January 2017, 11:54
UK government departments are advising IT contractors to hike their fees by a fifth in order to avert an exodus of self-employed techies that will be hit by a forthcoming tax clampdown, multiple sources have told The Register.

UK.gov tells freelance techies to slap 20 per cent on fees as IR35 tax hike looms • The Register (http://www.theregister.co.uk/2017/01/25/gov_advising_it_contractors_to_hike_fees_by_20_per _cent_to_avoid_ir35_exodus/)

sounds low compared to an offer I heard about...

difficulttimes
25th January 2017, 12:12
What surprised me was the fact there are 18 000 IT contractors in the civil service - wow we. 20% rate increase would be if the average day rate was £300/day that equates to an extra £1.08 million per day that is per day!! £300 million per year.

MrMarkyMark
25th January 2017, 12:13
What surprised me was the fact there are 18 000 IT contractors in the civil service - wow we. 20% rate increase would be if the average day rate was £300/day that equates to an extra £1.08 million per day that is per day!! £300 million per year.

Ah, but obviously the extra taxes will cover that :rolleyes: :laugh

teapot418
25th January 2017, 12:20
Bloke in the pub told me that a certain central government department are offering a 10% increase.

SueEllen
25th January 2017, 12:22
Bloke in the pub told me that a certain central government department are offering a 10% increase.

Any takers?

teapot418
25th January 2017, 12:27
Any takers?

He was considering it - he's on a pretty decent rate and figured "splitting the difference" was "fair". My view was that if you are outside (as he almost certainly is) then you shouldn't need to compromise. I believe he's outside 24 months for expenses, so that's not a consideration.

SueEllen
25th January 2017, 12:56
He was considering it - he's on a pretty decent rate and figured "splitting the difference" was "fair". My view was that if you are outside (as he almost certainly is) then you shouldn't need to compromise. I believe he's outside 24 months for expenses, so that's not a consideration.

He should get a permanent job there then and get a decent pension.

LondonManc
25th January 2017, 12:58
sounds low compared to an offer I heard about...

Why do you think they're advising it. Duh!

NHS1979
25th January 2017, 20:43
I doubt the NHS will be able to offer this kind of incentive - there are interim pay caps in force everywhere. NHS England has to agree everything over a certain level.

Also, if these IT bods hike prices but stay with the same govt ministry, won't they be targeted by HMRC for a retrospective investigation as posted elsewhere?

youngguy
26th January 2017, 09:05
I think if depts want/need to keep contractors they could look at, say a 10pc rate increase and allow contractors to use their employees t and s scheme. That might be enough to keep the lights on for their projects and programmes .