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

[DimPrawn]

So why are we getting the money we're getting at the moment? Shouldn't we all be on £150 a day?

Because for the clients it is quick, relative no hassle way of taking on more people to projects. One that quick, no hassle aspect is leaned upon by HMRC, watch clients drop contractors like hot potatoes.

[Guvernator]

So why are we getting the money we're getting at the moment? Shouldn't we all be on £150 a day?

The day rate for someone in my line of work can fluctuate by more than £300 a day. Although the one's at the top probably get loads more applicants, both jobs eventually get filled as someone will usually be willing to do the work. When 95% of jobs are deemed inside IR35 there will nowhere left to run to, you'll either have to leave contracting or more than likely except an inside job. Sure some companies may up the rate to compensate or try to make arrangements to stay outside IR35, those are the jobs which will receive about 1000 applicants the moment they go on job sites, do you feel lucky?

Even with the increased tax rate there will be many who will take it on the chin as they will probably still be better off financially then permanent staff. Someone on an average £400 a day earns the equivalent of £72k under IR35 which is still a lot more than the average for permie staff. I predict a lot of wailing and nashing of teeth and some will jump ship but most will just bend over and take it.

[Andy2]

The day rate for someone in my line of work can fluctuate by more than £300 a day. Although the one's at the top probably get loads more applicants, both jobs eventually get filled as someone will usually be willing to do the work. When 95% of jobs are deemed inside IR35 there will nowhere left to run to, you'll either have to leave contracting or more than likely except an inside job. Sure some companies may up the rate to compensate or try to make arrangements to stay outside IR35, those are the jobs which will receive about 1000 applicants the moment they go on job sites, do you feel lucky?

Even with the increased tax rate there will be many who will take it on the chin as they will probably still be better off financially then permanent staff. Someone on an average £400 a day earns the equivalent of £72k under IR35 which is still a lot more than the average for permie staff. I predict a lot of wailing and nashing of teeth and some will jump ship but most will just bend over and take it.

spot on
anyone who thinks that rates will rise in private sector is delusional

[northernladuk]

spot on
anyone who thinks that rates will rise in private sector is delusional

Quite a few people said that about the Public Sector back in the day and they were wrong.

[NotAllThere]

Eh, I'm not convinced. I've been to quite a few places recently that have learnt some hard and expensive lessons about what cheap foreign resource gets you.

I was discussing this with client permies. The fact is, you can have 50 morons and they still won't be able to solve the issues that one reasonably intelligent person can deal with in an hour, no matter how long they try.

[Andy2]

Quite a few people said that about the Public Sector back in the day and they were wrong.

public sector has bottomless pit of money. Private sector would rather offshore more or hire permies rather than spend 50% more on contractors and if they decide to hire contractors they will hire 2 contractors instead of 3 , so the number of contractor vacancies will fall.
Also someone living away from home for a contract will make less money than working on a permanent job locally. So financially contracting will not make sense any more

[northernladuk]

Piffle. You haven't a clue what's going to happen.

[TwoWolves]

I was discussing this with client permies. The fact is, you can have 50 morons and they still won't be able to solve the issues that one reasonably intelligent person can deal with in an hour, no matter how long they try.

I know that, you know that but British management? It will be a long wait.

[Big Blue Plymouth]

I predict a lot of wailing and nashing of teeth and some will jump ship but most will just bend over and take it.

It's the loss of travel and subsistence which is the real killer for me. It just won't be worth it anymore unless I relocate.

[Zigenare]

It's the loss of travel and subsistence which is the real killer for me. It just won't be worth it anymore unless I relocate.

That's not going to work on a contract by contract basis though, is it?

The writing is on the wall, it was good while it lasted.