HSBC contractors to be inside IR35

[Consultantman]

Thanks.
Assume end of September contracts are shorter than the usual 6 month extensions you're used to?
No coincidence that its 6 months prior to April 2020 IR35 'live' date.
They seem to be taking the simplified approach - we don't need contractors, convert those we 'need' and bin the rest....then in a few months they'll realise that they have a skills shortage on short term work and don't want to hire people, so they'll reach out to contractors. Its a never ending cycle!
THIS is when they'll start thinking about whether or not the skilled person/LTD co they get in is in-scope for IR35.

Clients are not preparing themselves for IR35, as they think they can dispense with contractors, but will soon realise that they need them! Probably in lesser numbers, but still.

That's what I am hoping for too. May take an extended break from sept onwards

[ShandyDrinker]

Thanks.
Assume end of September contracts are shorter than the usual 6 month extensions you're used to?
No coincidence that its 6 months prior to April 2020 IR35 'live' date.
They seem to be taking the simplified approach - we don't need contractors, convert those we 'need' and bin the rest....then in a few months they'll realise that they have a skills shortage on short term work and don't want to hire people, so they'll reach out to contractors. Its a never ending cycle!
THIS is when they'll start thinking about whether or not the skilled person/LTD co they get in is in-scope for IR35.

Clients are not preparing themselves for IR35, as they think they can dispense with contractors, but will soon realise that they need them! Probably in lesser numbers, but still.

Probably a certain element of truth in what you say but HMRC are playing a numbers game here.

I suspect they'll be more than happy if they can tip the balance from the majority being outside to the majority being inside, regardless of the damage done to the sector.

[Syd]

They're moving their IT workforce to India.

[smalldog]

Heard so many scare stories in the past about sacking here and sacking there.

Lots of posturing usually to shake the tree.

Maybe they have an offshore strategy in the pipeline but if its really to blanket everyone to IR35 then I hope some of the contractors have the balls to say no ta and bugger off leaving critical business deliveries swinging in the wind.

[JohntheBike]

Nobody has mentioned it because it is irrelevant to the discussion.

In your second sentence, rather than "Anyone who is paid...", the correct phrase would be "Any employee or worker who is paid..." - the law does not apply to those who are neither.

Just by being inside IR35 does not make you an employee or a worker, so the regulations do not apply.

You could go to a tribunal and argue that you are an employee or worker, and if you win then you could argue that you should have had a payslip, but I'm not sure what the point of that exercise would be.

Time will tell if these regulations will have an effect on the issues. All I've attempted to say is that they might have an effect.

[borisbike3]

Am at HSBC and got a contract till Sept end. Lots of contractors in the team and none of us have heard anything. I will update here if I hear more.

A friend of mine in has been told go perm or go. Deadline is december. Heard the same via recruiter at another part of HSBC.

[fullyautomatix]

They're moving their IT workforce to India.

They have significant IT workforce already in various locations in India. Nothing new. I doubt anything has changed with regards the outsourcing strategy.

[cojak]

As an update to this thread and apologies if posting a link to another site is considered heresy:

IR35 HMRC Exemption - Contractor Weekly

In short, I suspect there must be some substance to the HSBC story if they felt able to run with the article - paragraph near the end:

Sadly, I learned over the weekend that HSBC have put policy in place to sack all its contractors come September 2019, with other banks also intending to follow suit. How is this conscionable or fair?

Conscionable? Fair??

It's business! Not a good business for contractors, but business none the less.

Feck me, a few pennies may finally be dropping for the 2+ year permietractors in these places...

[cojak]

Thanks.
Assume end of September contracts are shorter than the usual 6 month extensions you're used to?
No coincidence that its 6 months prior to April 2020 IR35 'live' date.
They seem to be taking the simplified approach - we don't need contractors, convert those we 'need' and bin the rest....then in a few months they'll realise that they have a skills shortage on short term work and don't want to hire people, so they'll reach out to contractors. Its a never ending cycle!
THIS is when they'll start thinking about whether or not the skilled person/LTD co they get in is in-scope for IR35.

Clients are not preparing themselves for IR35, as they think they can dispense with contractors, but will soon realise that they need them! Probably in lesser numbers, but still.

They've forgotten why they got rid of the permies in the first place.

Pensions, training, unions, HR and any pretense that they are a 'caring' employer - all of that stuff costs, and their shareholders are only interested in the short-term bottom line.

[swamp]

Roles in the public sector are now routinely advertised as being outside IR35. Even roles at HMRC.

I'll take a large folding-money bet that HSBC do the same in a few years, once all their best people walk out and they're left with the dross to complete their critical projects.