Banking and IT Contractors are reeling after the Morgan Stanley decision to take no more contractors. This is a direct result of Philip Hammond’s and Theresa May’s decision to roll out the public sector IR35 changes in the private sector from April 2020. This will come into effect in October 2019.
Existing contractors have been offered three options:
- Leave Morgan Stanley Immediately
- Accept a contract that is inside IR35
- After 22 months of option 2 they must become permanent employees of the bank.
With Morgan Stanley’s decision being made, contractors may find other major banks doing something similar. For contractors this may mean fewer contracting jobs with banks.
A recent survey showed that 59% of companies are thinking of taking a blanket approach to contractors. That would be likely to involve making their contractors sign contracts saying they are inside IR35.
The same survey showed that many companies are considering cutting back on the number of contractors that they use. The Morgan Stanley IR35 decision could be just the first of many in the private sector.
Contractors: When the IR35 changes were implemented in the public sector, rather than just pay the IR35 tax, most contractors inside IR35 decided to take the umbrella company route. If you are inside IR35, or caught by a blanket ban on Limited Company contractors, it would be worthwhile contacting us for a no obligation pay calculation to see what your net income would be using our services Tel: 01252 863 700 or email info@epayme.co.uk
Agencies: If you are an agency and have any concerns or need some advice on how to prepare for the proposed changes from April 2020 contact us on: 01252 863 700 or email: sales@epayme.co.uk for a confidential chat.
Source: IT Contractor News & Advice