IR35 Blanket Ban Company Offer Contractor £70,000 Less Pre Tax and NI

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IR35 Blanket Ban Company and Contractors
IR35 Blanket Ban Company and Contractors

IR35 Blanket Ban Company

One IR35 blanket ban company has decided to do away with contractors altogether. They told one contractor that all contractors are tax avoiders. So, they won’t be using any more of them.

Contractor Questions on IR35 Blanket Ban Company

  1. What offer have IR35 blanket ban company made to contractor?
  2. What employee benefits will the contractor get?
  3. Could Fixed Term Contracts become the new way of working for many contractors?
  4. Why have so many of the UK’s top companies turned anti-contractor?
  5. Could this IR35 blanket ban company become typical?

What offer have IR35 blanket ban company made to contractor

However, the company do want at least some of their contractors to stay. Indeed they called in one contractor and made him an offer.

Instead of the approximately £120,000 he has earned in the past year they would like to offer him £50,000 – a drop of £70,000 in income.

However, that is not take home pay. That is before they would extract income tax and national insurance from it.

What employee benefits will the contractor get

He would get the benefits that permanent employees get like sick pay, holiday pay and pension contributions.

However, one benefit that he wouldn’t get would be security of employment.

All they are offering him is a Fixed Term Contract of 18 months. Once that is up they can dump him without any redundancy money.

Presumably they could renew him on the same basis, i.e. another 18 months with no redundancy money as the end of it if they decided they did not want to re-hire him.

Indeed he could be there for 20 years and not get any redundancy money if they got rid of him then.

Could Fixed Term Contracts become the new way of working for many contractors

This is contract work at permanent employee salaries with lot of the risks of being a contractor.

It would be terrible if this was to become the new norm for contractors.

One other thought is why are companies who were so contractor friendly in the past now so contractor unfriendly calling them all tax avoiders now.

Why have so many of the UK’s top companies turned anti-contractor

Could it be connected to the fact that HMRC now have advisors in at 2,000 of Britain’s top companies advising them how to implement the IR35 changes? That would explain why so many companies are issuing blanket bans on the use of PSC contractors.

The news just gets worse and worse for contractors. Lots of different people, who were always jealous of what they earned, are putting the boot into contractors.

Could this IR35 blanket ban company become typical

It’s all down to this quote from Theresa May and Philip Hammond that “It is an unfair anomaly that a self employed person earning £100,000 a year pays less in taxes than an employee earning £100,000 a year.

We know this is nonsense as it is not comparing like with like. However, no one has managed to disabuse successive Prime Ministers and Chancellors of this notion.

Now it looks as if new Chancellor has had this idea firmly ingrained into his psyche from hearing his weekend Birmingham speech.

He’s only just in the job for a couple of weeks but already Nishi Sunak has already revealed himself as deeply ant-contractor.

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