Which one of you is this? Times report on private sector IR35

[woohoo]

he will have to pay far more tax on his earnings from April 2020 if he is contracting for a large or medium-sized firm

What is going to constitute a large or medium sized business ?

Well a large business is really big and medium one is less so. A small business can fit into the palm of your hand.

[psychocandy]

80K takehome on 100K fees? He's using one of those avoidance schemes, isn't he!

Reckon on last gig I used to take home about 82%.....

100 miles day travel at 45p mile, £10K salary so no tax, split dividends with mrs (who only works part-time) so we're both under 40% threshold....

This gig (inside IR35 via umbrella) is about 55% I reckon. (Then again the rate was hiked by 40%)

[pjt]

Reckon on last gig I used to take home about 82%.....

100 miles day travel at 45p mile, £10K salary so no tax, split dividends with mrs (who only works part-time) so we're both under 40% threshold....

This gig (inside IR35 via umbrella) is about 55% I reckon. (Then again the rate was hiked by 40%)

I wonder if we'll see this in the private sector! I've had a few offers in public sector where the agent has basically taken my rate put it through a calculator and offered me a much higher rate inside IR35. Not had to take one of these yet but its good to know the offers sometimes understand the impact this has on us. Not so sure the private sector will do the same. Its crazy if the clients just work properly with contractors they can save a fortune.

[vetran]

I wonder if we'll see this in the private sector! I've had a few offers in public sector where the agent has basically taken my rate put it through a calculator and offered me a much higher rate inside IR35. Not had to take one of these yet but its good to know the offers sometimes understand the impact this has on us. Not so sure the private sector will do the same. Its crazy if the clients just work properly with contractors they can save a fortune.

Plenty of Agents hawking FTCs around at same as permie salaries.

[pjt]

Plenty of Agents hawking FTCs around at same as permie salaries.

FTC's are nothing new. They have always been kicking around. I don't know any self respecting contractor who will take one on though. Clients must struggle to get the right people in for these roles.

I'm not saying the changes to IR35 in the public sector have been easy but if you can work with your clients its not the end of the world. We're all meant to be in business if it was easy everyone would be doing it.

[TwoWolves]

I wonder if we'll see this in the private sector! I've had a few offers in public sector where the agent has basically taken my rate put it through a calculator and offered me a much higher rate inside IR35. Not had to take one of these yet but its good to know the offers sometimes understand the impact this has on us. Not so sure the private sector will do the same. Its crazy if the clients just work properly with contractors they can save a fortune.

The private sector are not in a position to throw money around like confetti as the public sector do, they earn their money.

[pjt]

The private sector are not in a position to throw money around like confetti as the public sector do, they earn their money.

They have 3 choices then, either work with suppliers to agree contracts that puts them outside, pay higher rates or struggle to get decent contractors to do the work. Remember this is a market and the market will work in our favour just as it has in the public sector.

I've seen clients struggle to get inside roles filled even at the higher rates. Again the market is our friend in this!

[NotAllThere]

Well a large business is really big and medium one is less so. A small business can fit into the palm of your hand.

Or you're just looking at it from a long way away.

[TwoWolves]

They have 3 choices then, either work with suppliers to agree contracts that puts them outside, pay higher rates or struggle to get decent contractors to do the work. Remember this is a market and the market will work in our favour just as it has in the public sector.

I've seen clients struggle to get inside roles filled even at the higher rates. Again the market is our friend in this!

I wish I had your optimism but in my experience there is a point were the IT tech simply won't give the benefits that will pay for an expensive consultant. They will just get 20 guys from India and muddle through somehow.

Mind you, I consulted on a project in the Summer with a lot of Indian guys, very nice and very busy but doing nothing that was advancing the project at all! Working 10/10, achievement 0/10.

[psychocandy]

I wonder if we'll see this in the private sector! I've had a few offers in public sector where the agent has basically taken my rate put it through a calculator and offered me a much higher rate inside IR35. Not had to take one of these yet but its good to know the offers sometimes understand the impact this has on us. Not so sure the private sector will do the same. Its crazy if the clients just work properly with contractors they can save a fortune.

Yes but the public sector is different. The extra comes out of some fund somewhere. When its impacting smaller companies people are going to notice more.