Despite being advised before the contarct that MatchTech would do "everything they could do" to provide an outside IR35 SDS when the time came, in relaity contractors were faced with NATS HR team (who I feel don't understand IR35) and MatcTech who were happy to help push any of their contarctors inside - so that they could retain their cosy relationship with the Client. Sadly, after 9 months supporting an important project I choose to walk away. Felt very 'blanket ban-ish'.
Unfair inside IR35 assessment in 2020, appeal rejected without considering evidence, would not reconsider appeal in 2021.
I’m looking for another role elsewhere, don’t care if it’s inside or outside IR35, I’m leaving as soon as I find something else.
Leonardo HR worried about shop floor contractors fitters & electricians (direct workers) up and leaving post IR35 so have increased their umbrella pay rates by £4.00 per hour to help soften the blow and entice them to stay (minimising impact to projects).
Unfortunately no rate increases have been given to the IR35 hit contractors in any other departments (Engineering/Design/Material Procurement etc.).
Why are Leonardo discriminating?
Despite a strong case for an outside IR35 appeal. As with the experience of other contractors, a generic letter from HR, with zero explanation to explain the rationale for the INSIDE decision. No detail or effort. Umbrella or PAYE only options. Many contractors leaving with many more planning to take their skills elsewhere. No movement on pay rates either to account for the fact we now have to pay Leonardo's employee NI & Apprentice Levy. Engineering Management need to be aware that critical projects are about to be heavily impacted.
It’s clear to say that all SDS are the same for every contractor indicating inside status! The company have no confidence in their abilities in making an outside decision as HMRC would potentially come knocking. Absolute diabolical state of affairs for the genuine consulting community and financially horrific. PAYE tax, additional Employers NI and pension payment nightmares. Not many options for the future if you persist with your Ltd except to leave the UK!!!
I have a contract where I provide limited support for a project I worked on for a number of years. This has amounted to 60 hours over the last 6 months. This worked is usually performed at weekends at my own premises, and I make sure if fits around my other client(s). This has served the project well - it does not have enough work to employ either a contractor or permit full time and allows Leonardo complete flexibility; they only contact me if/when something is required and I try to accommodate them around my other client(s).
Despite this arrangement, Brookson Legal have ruled it is inside IR35, They state:
The contractor .
The contractor has no mutuality of obligation (even though I have turned down pieces of work that I couldn't commit to).
The contractor has been provided with training (untrue), is integrated within the company and must work the same core hours as a permie with no choice about when or where the work is done (since when have core hours been Saturday morning or Sunday evening)...
The contractor may work for other client(s) but there is no evidence of this.... Bit sure how many contractors I know have a viable business that can survive on 10 hours billed per calendar month.
This is all an absolute joke and to top it the Agency stated that I could:
1 - be paid via my limited company as a deemed employee
2 - Use Brookson Legal's Umbrella (I am sure there is a conflict of interest there)...
As it stands I will be leaving unless Leonardo sees sense.
Individual assessment completed with input from hiring manager and Brooksons as the advisory to remain independent. Lots of other contractors also deemed outside and happy with the decision. Not spoken to many other than the obvious that are inside.
Today is the day when can rejoice for a little while, gather our strength for the next 12 months. No further SDS will be published. Those contractors that have had their contract to go umbrella can revert back to PSC. Business as usual.....not quite we're all getting laptops!!! Work from home!
Communication has been received from Matchtech today 26.02.2020 stating that all Basildon site PSC contractors will be receiving their SDS from Brookson on 04.03.2020 and all Yeovil Helicopter site PSC contractors receiving theirs from Brookson on 13.03.2020.
Many contractors already leaving or changing roles, there is tension, anxiety and a general low moral amongst the entire temporary workforce here.
Blanket determination using CEST tool. Determination made by Exxon procurement department with no input from either worker or Exxon engagement manager. Appears everyone I have spoken to are found inside. Options giving are umbrella, PAYE or inside IR35 though option giving to appeal determination. Will be leaving in April and pretty sure it won’t just be me.
There is a lot of uncertainty, though I've had very positive sounding feedback from someone on the internal IR35 'team'. As other comments say they have interviewed 'hiring managers', I don't even know who that is. I'm the only person doing what I do in this team so there is no direction or control, I doubt Brookson Legal know that so am unsure how they can assess us fairly.
I can see myself moving to one of the other defence companies in the local area if inside due to there rates being greater, Most of the local defence companies have declared all subbies inside I would be better off due to the low rates
Morgan Sindall failed to deliver the news via HR and it was down to the Project Director who admitted he didn't fully understand the rules or accountacy.
The decision was based upon what the company "thought" our contract clauses contained rather than look case by case. We are able to challenge the decision, however it has not been made clear if they will accept a determination by a IR35 specialist/solicitor. I have demonstrated that I fall outside IR35 weeks prior to the blanket ban being issued by employing a tax specialist to review my contract, however I have not received any communication to if they intend on keeping my services.
It is unclear on how many out of the 30 contractors will leave or stay however the atmosphere here is pretty low with people worried about how they will support their families and continue paying their bills.
As I knew this day was coming I have decided to take this opportunity to kick off my consultancy and have managed to speak to several potential clients. It left me feeling pretty low over the Christmas period, however I wasnt going to let this bring me down! Onwards and upwards!!
IR35 assessment interviews with Brookson done with hiring managers without inputs from individual engineers in some departments. Heard just recently some new contracts are forced into full on PAYE/IR35.
Unfortunately, due to the highly publicised blanket determinations recently, companies who have yet to finish their IR35 preparations are beginning to feel less and less able to make status decisions and some are anxious about working with bona fide consultancies on interim projects. If large corporations are choosing to “opt-out”, other organisations that are potentially less prepared and with less resource are more likely to feel as though it’s the only option, so blanket determinations it is.
E&Y risk averse assessment has deemed everyone (380) inside. Not good for the business as most current and future export orders will suffer from delays and financial penalties. Long term financial losses will outweigh short term thinking. Very disappointing result with near no communication.
I was told by an Agent looking to Recruit for NATS that they will do everything in their power to ensure working conditions allow an Outside IR35 decision to be made - otherwise in his words - "They wont have a business". Wonder what happened.
- Blanket assessment using CEST (all design type engineers across whole business).
- Questions answered incorrrctly paging no attention to actual working practices or contract
- 100% of the contractors I have spoken with have been given an SDS of Inside.
- Appeals allowed but limited time and unlikely to yield any changes.
- Independant IR35 using Brookson Legal showed Outside IR35.
- 90% of the contractors I’ve spoken with are either set on leaving or searching for alternative outside IR35 options. Including international.
When will these big companies wake up? Probably when the $h1t hits the fan on big projects, and/or the UK has lost some of its most skilled workers!
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