Dodgy contractor schemes, undercutting and competition

[Old Greg]

I dare not stray onto the holy ground of the NTRT thread for fear of angering the Mighty Ones.

And in the vague hope of having an interesting discussion, here we go in General.

I know that I've lost business on one occasion, at extension time, to a cheaper contractor who was operating 'under the Jimmy Carr scheme' to use her own words. I couldn't match her price and she could afford her price because of her scheme.

But I wonder on how many occasions I may have lost business without knowing. You see an ad and speak to the pimp who doesn't put you forward because there are others quoting 10 to 20% lower that you. I have no way of knowing if they are dodgy scheme folk, but... look at it from another angle: every time a dodgy scheme contractor gives a price to a client, their non-dodgy-competitors are at a competitive disadvantage because they have a substantially higher cost base. It is like trying to compete with on-line CD sellers who operate from jurisdictions where no / low VAT is payable.

Anyone else go any experience or thoughts on this or am I just unlucky, paranoid, mean-spirited etc.?

[vetran]

you sure it wasn't just she was easier on they eye?

If your Avatar is anything to go by children run screaming.

I was told when being replaced by a bunch of chaps from abroad who were rotating on 179 day tours and being paid just above minimum wage it was perfectly fair. The New Lie Government kissed goodbye to tens of thousands of tax.

are you evasionist?

[Old Greg]

you sure it wasn't just she was easier on they eye?

Yes. I absolutely know that she got the business because she was cheaper, because I was asked to match the rate to retain the business, and I couldn't do it.

[doodab]

Anyone else go any experience or thoughts on this or am I just unlucky, paranoid, mean-spirited etc.?

It's the same for me, living in London with two kids I simply can't afford to work for £300 a day whereas many people (childless, with homes outside the SE) can.

[AtW]

I know that I've lost business on one occasion, at extension time, to a cheaper contractor who was operating 'under the Jimmy Carr scheme' to use her own words. I couldn't match her price and she could afford her price because of her scheme.

Have you tried wearing miniskirt?

[mudskipper]

I imagine it's rare. Most tax avoiders are greedy feckers, and aren't avoiding tax to line the pockets of their clients.

[Old Greg]

It's the same for me, living in London with two kids I simply can't afford to work for £300 a day whereas many people (childless, with homes outside the SE) can.

But what's the minimum daily rate you can work for (in better health days perhaps)? What would be the minimum rate you can work for if you were working via a dodgy scheme? How would that affect your ability to win business? Or as MS says, would you not lower your minimum rate but just make more profit?

[vetran]

I imagine it's rare. Most tax avoiders are greedy feckers, and aren't avoiding tax to line the pockets of their clients.

evidence? or is it just good propaganda?

[AtW]

evidence? or is it just good propaganda?

The best kind of evidence available to back it up - anecdotic...

[Old Greg]

Have you tried wearing miniskirt?

It's still only worth another £25 pd. Doesn't close the gap.