Resource solution

[WordIsBond]

The exceptions won't be experts, it will be the odd company willing to take greater risk...

Not true. I've had two proposals in the last month from those who are blanket-banning PSCs. I've told them I'm not doing British banks right now because of IR35 and they promised me outside. Still not doing it.

Maybe you'll have to be very niche, almost irreplaceable, but he's right, there will be outside roles for experts.

[sal]

Sorry to be digging out an old thread - but I am contracted through RS with one of the banks and been told I either go as PAYE with them or no extension.. I don't mind being PAYE but they are not giving up any details on how the rates are calculated. From the onset it seems like they will deduct almost 47% of my daily rate and to be told there will be income tax deductions on top of that seems utterly pointless. Is there anyone else in the same boat who can share how it worked out for them?

47% seems about right when they saddle you with Employer NI, why do you think there will be income tax deductions on top of that?

Ultimately the big banks will resort to getting skilled people through micro consultancies "vetted" and with airtight contracts between them and the banks, to satisfy the risk management people in the banks.

It's just a shift in the market. Skilled people will be able to get what they are worth in net pay, one way or another.

[LondonManc]

Anyone that signs one of those with that clause in, is well asking for it.

The only thing that was "questionable" was the notice period which was a month, everything else was fine and like i said, i had my accountant (not that this means much) and an IR35 specialist firm review it and all parties approved of it.

Correct; although I've read about one bank doing the opposite which seemed fine, by setting a maximum number of billable days per year.

Sorry to be digging out an old thread - but I am contracted through RS with one of the banks and been told I either go as PAYE with them or no extension.. I don't mind being PAYE but they are not giving up any details on how the rates are calculated. From the onset it seems like they will deduct almost 47% of my daily rate and to be told there will be income tax deductions on top of that seems utterly pointless. Is there anyone else in the same boat who can share how it worked out for them?

I contracted through an agency then through RS at Barcap years ago. Never had a problem with them and the contract was fine.

In terms of the percentage, your other issue is expenses - they're unclaimable if you're insude. Being insire on standard contract rates would remove me from the London market.

[Paralytic]

Not true. I've had two proposals in the last month from those who are blanket-banning PSCs. I've told them I'm not doing British banks right now because of IR35 and they promised me outside. Still not doing it.

Maybe you'll have to be very niche, almost irreplaceable, but he's right, there will be outside roles for experts.

The client promised you outside, or the agency did? I'd only trust one of them...

I do agree that many (perhaps most) companies will make exceptions, including the banks, but only for roles that can clearly be written as an SOW.

[JoJoGabor]

Just to add evidence from another client in, a medium sized insurance company have stated only FTC under PAYE but with a few exceptions where they will use ltd company contractors

[ciaozio]

I just had a call with them to discuss my contract renewal.

The new rate is about 14% lower (guessing they took what they will pay on employer NI), and on top of that there will be income tax and NI deducted.

Gonna be unemployed next week.

[LondonManc]

I just had a call with them to discuss my contract renewal.

The new rate is about 14% lower (guessing they took what they will pay on employer NI), and on top of that there will be income tax and NI deducted.

Gonna be unemployed next week.

Depends on your location surely? You're on more with a bad rate than no rate.

[oliverson]

Depends on your location surely? You're on more with a bad rate than no rate.

I really can't subscribe to this way of thinking. There's NO WAY I would even entertain such a thing. I'm not sidelining my Ltd company of almost 20 years because some clown has decided all contractors should be on the payroll or brolly. **** 'em.

[Anubis]

I really can't subscribe to this way of thinking. There's NO WAY I would even entertain such a thing. I'm not sidelining my Ltd company of almost 20 years because some clown has decided all contractors should be on the payroll or brolly. **** 'em.

Doing the same as you. Going inside \ PAYE \ brolly just opens you up for HMRC investigation if nothing has really changed; in normal times almost no real contractor would ever entertain this option - it's only because large firms know contractors are being forced up against the wall with a "take it or leave it" choice. Done the same as you...chose to leave it.

[oliverson]

Doing the same as you. Going inside or PAYE just opens you up for HMRC investigation; in normal times almost no real contractor would ever entertain this option - it's only because large firms know contractors are being forced up against the wall with a "take it or leave it option". Done the same as you...chose to leave it.

Good for you.

My fate is soon to be discovered as contract is up for renewal end Feb. But it's a very easy decision for me to make. Either it stays as it is or I'm out the door. There is absolutely no scope for negotiation. And if the market is as bad as claimed, I'll go abroad.