1. The Future
of
Independent Contracting
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2. Background
The future of independent contracting was first discussed back in 2003
by a group of independent contractors getting together to talk about
concerns about liability and risk under IR35 tax laws when operating
through a Management Service Company (MSC)
A framework was defined for analysing operations to help understand
and assure effectiveness as a contractor, as well as better balance the
risk of doing it in line with other parts of the supply chain for
independent contractors’ services.
An organisation, known as the 7C Alliance, was formally incorporated
to provide around this framework in May 2004. This largely amounted
to a single point of contact for events and information services where
different types of agencies and service providers in the supply chain
could share knowledge and news with groups of contractors about the
market, and independent contractors themselves could share jobs
independent of recruitment agencies
The future of
independent contracting
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3. The future of
independent contracting
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What are the 7 C’s?
1st C
2nd C
3rd C
4th C
5th C
7th C
6th C
Core Capability
(What value proposition)
Cost of Doing
(Office Rental, Laptop, Software, Travel,
Contact
(Agencies, Consultancies and End-clients)
Commitments
(Professional, Technical, Personal)
Conditions of Engagement
(Contract T’s and C’s)
Compliance
(AWD, FATCA, IR35, PI)
Competitiveness
(CV, website and other marketing)

4. The Future of
Independent Contracting
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2015
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Key drivers of independent
contracting
Some of the key drivers in the past:
• IR35 tax laws
• Employment laws
• Agency and Temporary Workers’ Directive
(AWD/TWD)
• Contractor Third Party Rights Act
• Preferred Supplier List (PSL)

5. The Future of
Independent Contracting
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OPTN Partners LLP
5
Past Structures
• Umbrella company
• Managed Service Company (MSC)
• Personal Services Company (PSC)

6. What’s Changed?
• Since the 2009 Recession, the UK Government has
become more aggressive about ensuring tax liability is
clear and collection is effective
• However it is now also focused on development and
growth of small- to medium-sized enterprise (SME)
businesses, largely through BIS
• SME businesses offers scope for engagement of
interims and other forms of independent contractors -
but just not necessarily through agencies and interim
service providers…..
• The proposed SME development and growth model
potentially allows for independent contractor’s PSC
business to mature from being what it calls a “micro
service business” into a SME
The Future of
Independent Contracting
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7. Other Future Considerations
Some interim consultants, managers and
other types of independent contractors are
not just operating independently in one line,
field or type of business but also:
• Managing portfolio career or careers,
• Operating a second “lifestyle” business
separate to the primary PSC
• Setting up and managing multiple income
streams
The Future of
Independent Contracting
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8. Micro Business Support Services
The future development of a “micro service business” will
be facilitated by a new range of support services
becoming involved in the supply chain:
• Business Coaches:
Not just recruitment agencies and consultancies, but
professionals who can advise on scope to become a
SME and develop the independent contractor’s
operation as a micro service business
• Finance and Investment Advisors:
Not just accountants and tax advisors, but broader
skilled finance professionals who can advise on
investment strategies and wealth management for the
business owner as much as for the business itself
The Future of
Independent Contracting
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9. MSB and SME Development
• The future will be facilitated through partnership
brokering
• This will involve new types of trading, using social
media networking sites such as LinkedIn, Twitter and
XING as well as new network integration sites such as
the Open Practice Trading Network (OPTN)
• OPTN Partners LLP is a new form of business set up
to enable social media network integration services for
integrated communication between independent
contractors as micro service businesses with the full
supply chain of service providers as well as with
contractor networks and organisations like ICAEW and
the 7C Alliance who define, assure and support trade
practices
The Future of
Independent Contracting
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10. Current 7C and OPTN Initiatives
• Development of support tools, such as a 7C
app for helping to identify contract jobs,
• Establishment and management of online
forums where independent contractors can
come together to discuss the market.
• Creation of the Open Practice Trading
Network (OPTN) for promoting products and
services of independent contractors; as well
as
• A partner introduction and brokering service
through OPTN Partners LLP
The Future of
Independent Contracting
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