And so it begins ... agencies into employers And so it begins ... agencies into employers - Page 3
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  1. #21

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    Quote Originally Posted by FIERCE TANK BATTLE View Post
    You'll save on insurance though, surely you won't need to sets of liability insurance if they're covering it right
    What kind of insurance costs you 50 quid a day!?
    "The boy who cried Sheep"

  2. #22

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    Quote Originally Posted by CryingSheep View Post
    What kind of insurance costs you 50 quid a day!?
    I'm a liability behind the wheel of my Maserati

  3. #23

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    Quote Originally Posted by northernladuk View Post
    No tulip sherlock. Best option for who? Only the agent surely.

    They are proposing a sham arrangement that just changes the upper contract between them and the client. They'll still be just providing bums on seats and if those bums on seats are fail any IR35 test it should still be inside. Agencies tried this with the Public Sector and on the whole failed. The few that did I am sure will be running a pretty poor model that puts the client at great risk.

    I'd be willing to bet the actual service they sign up for is nowhere near what a proper model should be to pass any basic test. No way are they set up to provide proper consultancy of fixed pieces of work based on deliverables.

    Might work, might not but it's nothing more than BAU under a different contractor. A clued up client isn't going to go near this.
    So in the case of the London Financial Institutions, whereby I would estimate that about 90% of them have said that all contractors are within iR35 come next April, I personally don't see any other way around it. It's all we'll and good saying a clued up client isn't going to go near it, but I reckon most contractors will end up going down this route as I see no viable alternative if they want to stay 'working' in the financial sector.

    I bet that in the next 6 months we are going to see a load of posts on here asking about the most profitable way of closing down their Limited Company as I think most contractors will end up doing exactly that.

    The biggest losers of April 2020 are going to be the Umbrella and Accountancy companies as they will see their market dramatically shrink overnight.

  4. #24

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    Quote Originally Posted by mogga71 View Post
    So in the case of the London Financial Institutions, whereby I would estimate that about 90% of them have said that all contractors are within iR35 come next April, I personally don't see any other way around it. It's all we'll and good saying a clued up client isn't going to go near it, but I reckon most contractors will end up going down this route as I see no viable alternative if they want to stay 'working' in the financial sector.
    I think that 90% is wrong. We had two posts with some gossip that their clients were going blanket inside and I believe both clients have since said they are going to apply proper diligence rather than blanket so I think the actual number will be much lower than that. The fact the first two pieces of news we had then got reversed is pretty positive. I also don't see why then need to go through the agency employment model, the didn't in the public sector. The standard client via an agent will still continue but people will be asked to go PAYE via the agent or go brolly.
    There will be exceptions to both the topics above but I don't think either will be as you say in general.
    I bet that in the next 6 months we are going to see a load of posts on here asking about the most profitable way of closing down their Limited Company as I think most contractors will end up doing exactly that.
    We'll see a lot more posts from contractors that have their heads in the sand and don't know anything about IR35 let alone the changes. We've another 4 months of educating the late comers that haven't done anything about it themselves first.
    The biggest losers of April 2020 are going to be the Umbrella and Accountancy companies as they will see their market dramatically shrink overnight.
    Not sure about the brollies and we will see. It's not going to be pleasant for the first year that's for sure.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #25

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    What about looking at it the other way - employers become agencies?


    It wouldn't take much for one of the Big4, or smaller consultancies to form an off shoot (so they don't tarnish or undervalue their brand) bring in a few "Partner chasing hot shots" who do (well maybe) know technology, sectors, projects etc.


    If they got a few pimps on board initially to open doors then it becomes a sales operation (which both do) but where the hybrid companies have a reasonable understanding of client needs, a sourcing and placement service that pimps and consultancies do anyway, and then either a payroll service (easy) or invoice processing (easy) depending on IR35 status of the placed "resource" bolted onto the end.


    It may take a bit of legal shenanigans to get it structured correctly at first, but that's also what Big4's do so they have all of the associated finance & legal resources readily available from the mothership.


    Far from perfect for anyone, but come April there may be carnage everywhere so would it be any worse?

  6. #26

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    Quote Originally Posted by northernladuk View Post
    I think that 90% is wrong. We had two posts with some gossip that their clients were going blanket inside and I believe both clients have since said they are going to apply proper diligence rather than blanket so I think the actual number will be much lower than that. The fact the first two pieces of news we had then got reversed is pretty positive. I also don't see why then need to go through the agency employment model, the didn't in the public sector. The standard client via an agent will still continue but people will be asked to go PAYE via the agent or go brolly.
    There will be exceptions to both the topics above but I don't think either will be as you say in general.

    We'll see a lot more posts from contractors that have their heads in the sand and don't know anything about IR35 let alone the changes. We've another 4 months of educating the late comers that haven't done anything about it themselves first.

    Not sure about the brollies and we will see. It's not going to be pleasant for the first year that's for sure.
    Thats interesting .... what first two pieces of information are you referring to? ..... if you are talking about HSBC and MS reversing their initial stance .. forgive me if it's not them you are talking about .... then I have heard absolutely nothing concrete about that. I know contractors who work for both and they have heard nothing about this and are constantly pushing for information. Once a single contractor is told they are outside IR35 from next April at either of these places then all hell will break loose and a serious sh1t fest will ensue as both agencies and contractors will be demanding to know the differences.

    I think the agencies will allow contractors to go down the separate brolly route if they wish ... but why bother when they will very likely be able to do the same thing (probably) cheaper.

  7. #27

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    From what we've seen in public sector the agency PAYE is not cheaper.
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