Deutsche Bank Contractors IR35 Revolt
Deutsche Bank Contractors are in open revolt over IR35 and are considering all walking out at the end of next month.
50 out of the 53 who work in Change Management which deals with global compliance, anti-money laundering and financial crime are considering their options.
Questions on Deutsche Bank Contractors IR35 Revolt
- Why are Deutsche Bank contractors in open revolt over IR35 changes?
- What is Deutsche Bank’s policy on IR35?
- Why are Deutsche Bank contractors being blanket banned from using personal services companies?
- What are contractors at other companies doing about the IR35 changes?
- Why are the Government and HMRC doing this?
Why are Deutsche Bank contractors in open revolt over IR35 changes
It would be a huge blow to Deutsche Bank if they were all to walk out. Ex-Chancellor Sajid Javid use to be Managing Director of Deutsche Bank before he entered politics.
Indeed, it was while he was MD there that he implored the Government to ‘repeal the silly iR35 tax’. His ex company will be taking it a lot more seriously now.
What is Deutsche Bank’s policy on IR35
Deutsche Bank decided a while back that instead of testing their contractors to see who is inside IR35 and who is outside, they would no longer use contractors who used personal services companies. They would put a blanket ban on them.
All contractors would have to be PAYE, that is existing contractors and new hires. This would mean an effective 25% pay cut for their existing contractors. Deutsche Bank would not raise contract rates to compensate.
Why are Deutsche Bank contractors being blanket banned from using personal services companies
Under the new IR35 rules it is the hiring company now, rather than he contractors who will decide contractors’ employment statuses. There are huge penalties if they get it wrong. That is what is guiding so many of the UK’s biggest companies to blanket ban contractors using persona services companies.
Of course, it has to be said that the 50 contractors are only considering walking out at the end of March. I presume that the Deutsche Bank contractors are hoping that Deutsche Bank do something to ameliorate their situation.
What are contractors at other companies doing about the IR35 changes
One is expecting that there will be hundreds of companies who will be in the same situation shortly. It may not be as high a percentage of contractors as at Deutsche but sufficient numbers of contractors at companies across the country are prepared to walk out at the end of March rather than sign PAYE off-payroll contracts.
The number walking out on crucial projects up and down the land will be sufficient to cause mass chaos.
Why are the Government and HMRC doing this
The Government and HMRC seem prepared to inflict massive and lasting damage to thousands of the UK’s top companies all to bring in tax revenues worth less than a tenth of a penny on the pound on income tax.
With the Deurtsche Bank contractors in open revolt, and contractors in thousands of other companies about to do the same, something is going to have to give.
Or the whole thing will blow up in the Government’s face.
Time is very short!
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