Member Since: 28th Sep 2010
10th Dec 2019
Really interesting article. It is fascinating to find out what the big contractor accountancy firms are doing to avoid being the next Thomas Cook or Toys R Us. I think Crunch diversifying into sole traders (Crunch One) and small businesses (Crunch Three) is an admission and is in response to the IR35/off payroll changes (as already mentioned in the article). Crunch could easily lose 20% - 30% of it client base by the end of 2020. It looks like Crunch is getting ready to replace this loss of income with other revenue streams. I guess if you don't evolve you die, just ask Kodak and Blockbusters. Thanks for reporting the evolution in this sector, John.
10th Dec 2019
Great article / series. This is a question I have often wondered, i.e. what makes someone give up the safety of being an employee for all the risk of being self-employed. It kind of makes sense that it takes big life events (e.g. children, redundancy, ill health, etc) to give people the reason/opportunity/excuse to go self-employed. Class of 2019 seem very brave, especially as they all appear to have partners, children, etc. Would be good to read further articles on advertising & growing & cash flow, dealing with the loneliest of working from home & work/life balance, set backs and going back to employment, taking on first employees and moving into offices, effects of Brexit & IR35, etc.
7th Nov 2019
I think the uber drivers were workers rather than employees?
To be honest, I think the last thing that end clients and recruitment agencies and the rest of the supply chain care about is the employee/people accounting standard given everything that is going on, e.g. Brexit, off payroll, offshoring of jobs, etc.
7th Nov 2019
After working in this industry for 10 years now the best 2 websites I have found in my personal experience are contractor uk and contractor calculator- they have all the standard compliance stuff plus all the breaking news too.
30th Oct 2019
I don't think many end clients will engage limited company contractors as inside IR35. I believe end clients will hire contractors as individuals via a PAYE umbrella or via agency PAYE.
Any end client's engaging with PSC's on an inside of IR35 basis is just asking for employment tribunal trouble.
26th Oct 2019
Must be nice to have these types of problem!
10th Oct 2019
To be honest, in many contractor accountancy firms the client ratio is around 1 accountant to 200 contractor clients. If say 100k (i.e. 20%) clients close then 500 senior/semi-senior accountants will lose their jobs. In addition, these senior / semi-senior accountants are normally supported by junior accountants and therefore another 500 jobs will go there too. So, theoretically, a 1,000 accountancy jobs will be lost by the end of next year. That is a lot of unemployed accountants.
9th Oct 2019
Can you imagine if these huge contractor accountancy firms lost 75% of their client base. For sure they would go bankrupt and for sure there would be a lot if unemployed accountants.
I reckon at least 20% of contractors will be lost. This could easily increase to 30%. A 75% closure rate would be an absolute disaster for the industry. Especially for firms like Clearsky, Brooksons and JSA who own around another 20 contractor accountancy firms. I can't believe these firms are purchasing other contractor firms (unless they are getting a really good price).
9th Oct 2019
There has been a enormous number of contractor accountancy firms selling up to the likes of Clearsky (backed by Optionis), JSA (backed by universal partners) and Brooksons (backed by The Riverside Company) in the last 5 years. These 3 super contractor firms (backed by private equity partners) alone own at least another 20 contractor accountancy firms because these 20 contractor accountancy firms (including SJD) have cashed out knowing that their business value is diminishing fast. These 3 private equity backed super-contractor accountancy firms (clearsky, brooksons and jsa) all appear to be racing with each other to see who will get an IPO so that the private equity companies get their investment back. I fear that these private equity companies are going to lose a lot of money because they have valued these contractor firms pre-off payroll rules! A financial disaster waiting to happen in my opinion.
9th Oct 2019
Why would the HR directors care if the contractor gets investigated retrospectively? If the contractor gets investigated retrospectively then its the contractor's problem not the employer's problem.
Many of the banks are looking to employ contractors via PAYE once they get them to stop using their Ltd companies in February 2020.
You can't blame the banks for wanting to avoid having to do thousands of individual status determinations every 6 months, having to deal with thousands of appeals, employment tribunals, etc. Its a waste of their time and money. The banks will also save on VAT by employing the contractors via PAYE (as currently the banks have to pay VAT that the contractors charge via their ltd companies).