Contractors to be hit?

According to the leaked Govt report, one of the areas of consideration is :-

How do Pinsters read this? IR35 type legalisation?

en.wikipedia.org/wiki/IR35

Futher evidence that they are living in an alternate universe. There are no sectors of the economy sheltered from this carnage.

Er, doctors, midwives, etc etc

They are facing cutbacks, declining population and less demand for their services.

Consultants (medical), solicitors and barristers. Of course, if they go after the self-employed, they will cane the IT sector… me!

Consultants private practices (the real meat) will be hit, solicitors are generally savaged at the mo. Barristers are doing well though but money up front please.

having been a “contractor”

I agree with some form of IR35 legislation coming in.

This ruined the IT contracting market in the Uk.

good.

it needed ruining.

Disagree. Certainly hit it for a while, but pretty much all contracts are outside of IR35 now. Even when HMRC challenge a contract, they have a less than 0.1% success rate.

The biggest problem policing this is that some contracts can run for a long time. I’ve worked on IT projects that grew and grew and ended up taking two or more years. If you are onsite five days a week at what point during that time should you do the decent thing and change from contractor to an employee? More than one of those long term projects I was involved in was for a semi-state and I’d bet similar things have happened in full state bodies.

Is it really acceptable to take someone with a viable company and tell them they have to turn PAYE just because a single project runs over one/two financial years? Wouldn’t there be a lot of appeals?

Don’t know if I’d go that far. Certainly a large number of people who set themselves up and then sit in an office side by side with employees for years calling themselves contractors should be dealt with.

But there are consultants that do good work and want/need mobility to contract to different clients. If they find themselves working for an extended period for a single client due to the nature of a project that should be accomodated.

Even though I run the risk of being caught up in it I think regulation and some form of legislation would be welcome here to stop obvious abuse. But then where have we heard that before?

how do they manage to get out of it? could we do the same here?

we have contractors here working non stop for the last 20 years.

thats taking the piss, and should have been stopped by the company.

You only need a good accountant and solicitor to ensure you are not caught by IR35, anyone caught by it is not using their heads

Depends on the contract and how it is worded, but generally you need to be able to demonstrate

(I) Substitution is allowed - if I don’t turn up my “company” can send someone else to do the job
(ii) Direction and control by the end-user client must not be see as a boss / subordinate relationship
(iii) Contract should show there is “contract for services” not a “contract of service” (This is called Mutuality of obligation, but I’m buggered if I can really figure the minute details out).

Depending on how pished Hector is with you, they may look down upon things like you having an internal email address, a “title” within the organisation etc. They also frown upon Monday - Friday roles for years at a time.

Depends on the contract and how it is worded, but generally you need to be able to demonstrate

(I) Substitution is allowed - if I don’t turn up my “company” can send someone else to do the job
(ii) Direction and control by the end-user client must not be see as a boss / subordinate relationship
(iii) Contract should show there is “contract for services” not a “contract of service” (This is called Mutuality of obligation, but I’m buggered if I can really figure the minute details out).

Depending on how pished Hector is with you, they may look down upon things like you having an internal email address, a “title” within the organisation etc. They also frown upon Monday - Friday roles for years at a time.

just move every two years or so

I’ve been contracting in the Uk and as long as your contract is properly worded there is no problem. I’m moving to a new contract in Ireland and as far as I can see the contract is already worded to be outside any type of IR35 rules.
If you’re in one place too long then you can be caught but in general contractors move every couple of years anyway.
The ones who really get screwed are the lower paid, who’s employers force them into contracts so they don’t have to employ them directly and pay all the associated costs. They get caught by IR35 and get caught for full paye taxes without any of the advantages of being employed.
If we want this kind of legislation then what we really need is laws that force the employer to take you on as a full time employee once you’re there too long or if your job is really that of a permanent employee.

And we all know who are/were the king of the abused contractor?

ESB, Iarnrod, Bord Gais etc. etc