A former colleague sent me this:
Julie-Anne Brooks on LinkedIn: IR35 Sprint to the Finish - Is your business compliant?
I was interested in how Resource Solutions are 'marketing' the options to end clients.
Option 1 - 'the deemed model' - I don't really understand what they're talking about here. It happens that in my 7 years of contracting, I have always chosen to operate inside IR35 (I've always reconsidered this at outset of each contract, I'm well aware of the issues - I've just made different judgements about working practices than most contractors, in particular RoS). Anyway - this 'deemed model' in theory would be similar to what I've been doing, except it isn't. He's still implying the contractor would be paid net (and into TheirCo?) - which is... weird, and a hybrid, and I don't see any reason why anyone would do this. Worst of all worlds. I guess the only reason would be if any particular contractor usually - or sometimes - has contracts that fall outside IR35, meaning maintaining TheirCo is worthwhile even when there are also some outside IR35 contracts - but even so, wouldn't the outside ones be paid best direct to individual via PAYE / via Umbrella...? In other words, is this even a real option from a contractor perspective? And if not, why mention it to the clients?
Option 2 - Temp PAYE - 'may be more suitable at the lower rate band' - well yes, we know what this is.
Option 3 - Umbrella contractors - yes, we know all about this too.
Option 4 - Statement of Work - the way he phrases this (regular use of 'genuinely') makes me think he gets this one to some extent i.e. that it's relatively rare that this will be a credible option based on how end clients have typically used contractors up until now. But anyway yes - an option nonetheless.
Option 5 - convert to perm - fine, with all its pros and cons for both end client/ employer and contractor/ individual - but yes, an option.
Option 6 - outside IR35 - loose use of language here as he refers to the 'contractors' being outside IR35 instead of the 'contract' or 'role'.
Anyway - I get that this is aimed as a short 'intro and hook you in' to end clients but from a contractor perspective, is it just me or is Option 1 a nonsense?
Commentary welcome! I may well be missing something! I've worked through Resource Solutions in the past but not up with where they are with IR35 reform - what are they touting? Doesn't sound like SoW model from the way he talked about it so brolly? temp? Convert to perm is fine but it'll bring a lot of money upfront and a lot less ongoing (for the agency).
Julie-Anne Brooks on LinkedIn: IR35 Sprint to the Finish - Is your business compliant?
I was interested in how Resource Solutions are 'marketing' the options to end clients.
Option 1 - 'the deemed model' - I don't really understand what they're talking about here. It happens that in my 7 years of contracting, I have always chosen to operate inside IR35 (I've always reconsidered this at outset of each contract, I'm well aware of the issues - I've just made different judgements about working practices than most contractors, in particular RoS). Anyway - this 'deemed model' in theory would be similar to what I've been doing, except it isn't. He's still implying the contractor would be paid net (and into TheirCo?) - which is... weird, and a hybrid, and I don't see any reason why anyone would do this. Worst of all worlds. I guess the only reason would be if any particular contractor usually - or sometimes - has contracts that fall outside IR35, meaning maintaining TheirCo is worthwhile even when there are also some outside IR35 contracts - but even so, wouldn't the outside ones be paid best direct to individual via PAYE / via Umbrella...? In other words, is this even a real option from a contractor perspective? And if not, why mention it to the clients?
Option 2 - Temp PAYE - 'may be more suitable at the lower rate band' - well yes, we know what this is.
Option 3 - Umbrella contractors - yes, we know all about this too.
Option 4 - Statement of Work - the way he phrases this (regular use of 'genuinely') makes me think he gets this one to some extent i.e. that it's relatively rare that this will be a credible option based on how end clients have typically used contractors up until now. But anyway yes - an option nonetheless.
Option 5 - convert to perm - fine, with all its pros and cons for both end client/ employer and contractor/ individual - but yes, an option.
Option 6 - outside IR35 - loose use of language here as he refers to the 'contractors' being outside IR35 instead of the 'contract' or 'role'.
Anyway - I get that this is aimed as a short 'intro and hook you in' to end clients but from a contractor perspective, is it just me or is Option 1 a nonsense?
Commentary welcome! I may well be missing something! I've worked through Resource Solutions in the past but not up with where they are with IR35 reform - what are they touting? Doesn't sound like SoW model from the way he talked about it so brolly? temp? Convert to perm is fine but it'll bring a lot of money upfront and a lot less ongoing (for the agency).
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