Barclays forcing all contractors to go PAYE by February 2020 Barclays forcing all contractors to go PAYE by February 2020 - Page 2
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  1. #11

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    FWIW, rumour on the grapevine at current client co (insurance company), upper management was going to get rid of all contractors completely.

    They were eventually talked down from this when they realised just how many contractors they have.

    They did send out an advisory notice to all contractors a while back that talked about how they were analysing the coming changes. Have yet to hear what stance they will take.

  2. #12

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    qh
    Last edited by quackhandle; 2nd October 2019 at 20:42.
    He had a negative bluety on a quackhandle and was quadraspazzed on a lifeglug.

  3. #13

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    Quote Originally Posted by jmo21 View Post
    FWIW, rumour on the grapevine at current client co (insurance company), upper management was going to get rid of all contractors completely.

    They were eventually talked down from this when they realised just how many contractors they have.

    They did send out an advisory notice to all contractors a while back that talked about how they were analysing the coming changes. Have yet to hear what stance they will take.
    The real business approach talking to current client finance director is that they are and have reduced contractors to a minimum to reduce risk. Offer perm places and any contractors going into 2020 to have a different type of contract which is a b2b type based on projects and deliverables/milestones.

    It's the same through most orgs talking to directors as the chosen route through procurement. Pimps will still get a bit of the pie.

  4. #14

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    Quote Originally Posted by rlpb13 View Post
    The comms says "Barclays will engage contingent workers on a PAYE basis only for new or renewed contracts". That sounds slightly less heavy than the HSBC "go-perm or quit". The question remains as to what kind of salaries they're going to offer via PAYE and how these will compare to current day rates.
    Read the letter (image posted above) - its not Barclays that are offering the salaries, it will be the agency/managed service companies they're forcing contractors to go through. I suspect Barclays will be happy to continue to pay the equivalent of whatever the current day rate is to the managed service company; its its up to the individual and the managed service company to work things out from there.

    I suspect some people will be offered perm roles, but that will on the basis of individual hiring managers being able to open up positions to backfill the roles.
    Last edited by Paralytic; 2nd October 2019 at 07:21.

  5. #15

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    It's worth emphasising as no-one seems to have picked it up that Banks have a 20% leeway that other companies don't have as they cannot claim back the VAT on invoices. So for every £500 a bank pays you it usually costs them £600.

    Hence it makes sense in these new times (where risk is with the bank) to use the 20% they previously spent and (disappeared to HMRC) in VAT on increasing rates and bringing the people they really need on to their payroll.
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  6. #16

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    Quote Originally Posted by eek View Post
    It's worth emphasising as no-one seems to have picked it up that Banks have a 20% leeway that other companies don't have as they cannot claim back the VAT on invoices. So for every £500 a bank pays you it usually costs them £600.

    Hence it makes sense in these new times (where risk is with the bank) to use the 20% they previously spent and (disappeared to HMRC) in VAT on increasing rates and bringing the people they really need on to their payroll.
    Hmmm, interesting....

    https://www.contractoruk.com/forums/...ml#post2684684

    And what I wrote there (around IR35 determination, or lack of) is pretty much what Barclays and Lloyds have since announced (internally)
    Last edited by Paralytic; 2nd October 2019 at 08:05.

  7. #17

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    Quote Originally Posted by eek View Post

    Hence it makes sense in these new times (where risk is with the bank) to use the 20% they previously spent and (disappeared to HMRC) in VAT on increasing rates and bringing the people they really need on to their payroll.
    That would be ok but what I think it's going to happen is banks not increasing those rates. Rates will stay the same, you either accept or become permanent or leave. If there's something banks aren't known for is rate increases.

  8. #18

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    Probably worth noting that for each one of these, another company's silence may mean that they're going to use the legislation as intentended (possibly the wrong term, "properly") and actually make roles outside of IR35

    After all, if they are now, then they should be in 2020, right?

  9. #19

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    Quote Originally Posted by eek View Post
    It's worth emphasising as no-one seems to have picked it up that Banks have a 20% leeway that other companies don't have as they cannot claim back the VAT on invoices. So for every £500 a bank pays you it usually costs them £600.

    Hence it makes sense in these new times (where risk is with the bank) to use the 20% they previously spent and (disappeared to HMRC) in VAT on increasing rates and bringing the people they really need on to their payroll.
    That would work for permitractors/BAU roles. What about the project roles, it's quite the hassle to fire people after 1-2 years of being on the payroll.

    All of this completely ignores the skill availability for the respective pay bands. Which is the bigger problem, as they won't be able to pass the 20% "VAT savings" to the employees, without ramping up their pay bands across the board. HR will have meltdown if you try to pay someone more than his/hers line manager.

  10. #20

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    Quote Originally Posted by PerfectStorm View Post
    Probably worth noting that for each one of these, another company's silence may mean that they're going to use the legislation as intentended (possibly the wrong term, "properly") and actually make roles outside of IR35

    After all, if they are now, then they should be in 2020, right?
    Wrong. Clients (private sector) don't care today if any individual contractors has assessed themselves inside or out and will rightly (in their view) take a risk-assessed decision.

    And I admire you're confidence that other clients will do the "right thing". My expectation is that what LLoyds and Barclays have done will be the norm for large clients (at least in FS), but that they're simply working to slightly different timescales.

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