I suspect that writing the obituary to contracting is premature.
Yes, some larger hirers will cease taking on contractors for a period. How long? I think a couple of years.
In that time the balance between getting people in to do the urgent, then the important, then the routine tasks will become known and they will see that the IR35 cases are going in a certain direction and/or they will change their working practices to suit a SOW approach.
In the meantime, contractors will either go to smaller outfits and/or umbrella and/or permie at least whilst the dust settles.
In a couple of years (from April 20), confidence will return and we will see a pick up in contracting numbers as both sides of the equation start to see benefits.
Agencies may try to convert to consultancies. Beware. That is a lot harder than changing a letterhead and I suspect HMRC is already lining them up.
We will see new ways to reduce the tax "burden". This is more difficult as often the lure of an additional few percent is such that you give in to temptation. Don't.
In 2 years we will see numbers pick up, but we will never be where we are now.
Yes, some larger hirers will cease taking on contractors for a period. How long? I think a couple of years.
In that time the balance between getting people in to do the urgent, then the important, then the routine tasks will become known and they will see that the IR35 cases are going in a certain direction and/or they will change their working practices to suit a SOW approach.
In the meantime, contractors will either go to smaller outfits and/or umbrella and/or permie at least whilst the dust settles.
In a couple of years (from April 20), confidence will return and we will see a pick up in contracting numbers as both sides of the equation start to see benefits.
Agencies may try to convert to consultancies. Beware. That is a lot harder than changing a letterhead and I suspect HMRC is already lining them up.
We will see new ways to reduce the tax "burden". This is more difficult as often the lure of an additional few percent is such that you give in to temptation. Don't.
In 2 years we will see numbers pick up, but we will never be where we are now.
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