IR35 reform effect on the client

[DZ2]

Had a conversation with the client about the future. The new company policy is that none of existing contractors is to be renewed; the offer is to go perm. They will continue to hire contractors but there will be limit of 12 months max on total contract length (and they will have to go effectively inside but I'm not sure via what means exactly, FTC or umbrella).

Managers are not happy, especially as something similar happening in the US and main contracting pool is in US and UK, but nothing they can do; IR35 is too much risk for the company.

This is one of the major global drug development organisations.

[Paralytic]

Sorry, this simply will not happen. Blanket determinations are not allowed.

(where the sarcasm emoji?)

The 12 month reference may mean they are thinking FTC though - less administration/red tape.

[DZ2]

Sorry, this simply will not happen. Blanket determinations are not allowed.

(where the sarcasm emoji?)

The 12 month reference may mean they are thinking FTC though - less administration/red tape.

Oh but it's OK as it's not blanket determination, it's a new company policy (yeah where is that sarcasm emoji??)

I work for other clients simultaneously who haven't made the final decision yet, but I think they'll go the same way.

Ironically there are contract roles around on offer, 12 months duration but clients not made any determination so "it's outside until at least April" (in agent's words)

[malvolio]

Oh but it's OK as it's not blanket determination, it's a new company policy (yeah where is that sarcasm emoji??)

I work for other clients simultaneously who haven't made the final decision yet, but I think they'll go the same way.

Or they are the ones who have made the decision to learn how to continue as before, with proper contracts where appropriate...?

Ironically there are contract roles around on offer, 12 months duration but clients not made any determination so "it's outside until at least April" (in agent's words)

Agency Idiocy 101. The new rules will apply if you get paid after roughly mid-March 2020 during the existing contract. "at least to April" merely demonstrates they don't know what they are talking about.

For any role starting now, do the IR35 due diligence, make an honest (i.e. not optimistic) decision on status and if outside get your case locked down. From the start of next year, you're in the lap of the Gods for at least a year until the clients work out how to deal with their loss of staff properly.

[dx4100]

For any role starting now, do the IR35 due diligence, make an honest (i.e. not optimistic) decision on status and if outside get your case locked down. From the start of next year, you're in the lap of the Gods for at least a year until the clients work out how to deal with their loss of staff properly.

I suppose being cautious and not withdrawing dividends etc is probably sensible until you get the determination so you can switch one way or the other is probably sensible ?