Contractors switching to a Consultancy to remain outside IR35 Contractors switching to a Consultancy to remain outside IR35 - Page 2
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  1. #11

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    Once again it comes down to a few fundamentals that no-one seems to be willing to consider.

    1. The client being honest about the type of resource they need
    2. The contractor being honest about the type of worker they are
    3. Appropriate contracts that reflect the nature of the engagement

    It doesn't matter if the client uses an agency to do the leg work or decides to engage directly.

  2. #12

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    Quote Originally Posted by ladymuck View Post
    Once again it comes down to a few fundamentals that no-one seems to be willing to consider.

    1. The client being honest about the type of resource they need
    2. The contractor being honest about the type of worker they are
    3. Appropriate contracts that reflect the nature of the engagement

    It doesn't matter if the client uses an agency to do the leg work or decides to engage directly.
    I totally agree with you. The majority of contractors know they are caught by IR35 but continue to operate outside it as the lure of the extra money is too much.

  3. #13

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    Quote Originally Posted by mogga71 View Post
    I totally agree with you. The majority of contractors know they are caught by IR35 but continue to operate outside it as the lure of the extra money is too much.
    This can't be right in afraid. That would assume a majority of contractors know about Ir35. As we have seen recently this is far from the case. There will be plenty of them popping up like meerkats in the next 4 months. Some of the questions you'll see on here in that period will make you want to weep. It's ban season for me I expect.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #14

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    Quote Originally Posted by mogga71 View Post
    I totally agree with you. The majority of contractors know they are caught by IR35 but continue to operate outside it as the lure of the extra money is too much.
    Majority? you mean 90% as per HMRC claim?
    good fodder for HMRC enquiry!

    u should not post like this here!

  5. #15

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    Quote Originally Posted by ladymuck View Post
    Once again it comes down to a few fundamentals that no-one seems to be willing to consider.

    1. The client being honest about the type of resource they need
    2. The contractor being honest about the type of worker they are
    3. Appropriate contracts that reflect the nature of the engagement

    It doesn't matter if the client uses an agency to do the leg work or decides to engage directly.
    Exactly.

    However, what is definitely happening in the market is an increasing number of small 'consultancies' or providers building large groups of contract associates and taking on the big consultancies. There are a few variants I've seen and I don't think this is due to IR35 per se. I do think it will continue to grow in popularity in specialist areas for more senior but less technical roles. It will be interesting to see if anyone can make the model work for more common roles like dev, PM/BA etc but I have doubts.

  6. #16

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    Dave Chaplin is reporting that he has seen an internal confidential memo from a bank that states 'they are also not going to hire limited company contractors - from 28th Feb 2020.'

    I'm presuming this is a new addition to Lloyds, Barclays, HSBC etc.

    But it also says they will not be allowing any of their third party suppliers to use limited company contractors either. That will include consultancies, both large and small.

    That seems to be an extreme risk aversion position. Is it really workable and will others follow?

  7. #17

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    Apologies if I am misinterpreting something, but if their 3rd party suppliers use contractors, and it is the end client who would be liable for collection of taxes from an 'initially inside but later to be found outside' position, are we to believe that the client, in this case the bank, actually DO have the right to stipulate the Type of resources the 3rd party use?

    Would consultancies' use of contractors have a bearing on the fears of an end client?

    I might be a bit slow and behind the curve on this one...!

  8. #18

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    Quote Originally Posted by edison View Post
    Dave Chaplin is reporting that he has seen an internal confidential memo from a bank that states 'they are also not going to hire limited company contractors - from 28th Feb 2020.'

    I'm presuming this is a new addition to Lloyds, Barclays, HSBC etc.

    But it also says they will not be allowing any of their third party suppliers to use limited company contractors either. That will include consultancies, both large and small.

    That seems to be an extreme risk aversion position. Is it really workable and will others follow?
    RBS?

    I can see why this is the case. With the bank being the client, wouldn't they have to make the IR35 determination and be liable if it was wrong?

    I suspect Lloyds/Barclays are the same but just haven't made that sort of detail public yet.
    Last edited by Paralytic; Yesterday at 09:18.

  9. #19

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    Quote Originally Posted by Paralytic View Post
    RBS?

    I can see why this is the case. With the bank being the client/fee payer, wouldn't they have to make the IR35 determination and be liable if it was wrong?

    I suspect Llloyds/Barclays are the same but just haven't made that sort of detail public yet.
    It's the last one of the Big 4 to make an announcement so possibly....

  10. #20

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    Quote Originally Posted by edison View Post
    It's the last one of the Big 4 to make an announcement so possibly....
    Agency has started sending comms out today. Effectively the same as Barlcays/Lloyds. No contracts past end Feb, umbrella (or perm if offered) from then on.

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