The software house that grew to 100 staff, and why IR35 ends that

And when you're right - you're not wrong.

While working for a small software house, everyone knew everyone else - including the directors, who are a great bunch of people.

I have a lot of respect for the one director who - on the day that the company he used to work for was taken over by a multi-national - simply went to his boss, handed in his notice and promptly left. Enter one small husband and wife business.

By providing expertise in several areas (and by giving much better service than the new owners of his previous company - and at a better rate) the small business eventually became large enough to require additional staff.

The additional work was facilitated purely by contractors - due to the uncertainty of how the business would go. It worked. Enter an additional director, and some permanent staff and the business started to grow.

I was employee #15.

From what I can gather, there are now around 100 full time employees working there - no contractors (although there have probably been around 175 - 200 people through the doors).

The business started nearly ten years ago, basically as a one man (and one woman) band. Now it's just about due to reap the rewards of nearly folding twice, having the IR bounce all over them with respect to VAT, and the peaks and troughs in a - sometimes - unsure market place. And good on them!

I am now a 'one man band'. With IR35, what are my chances of doing the same?

I'm sorry to bring it up again, but... The 'body shoppers' have never had it so good as they have as of late. If they can't get cheap (sorry low cost - ho, ho, ho) graduate workers in to immediately farm out at an extortionate rate, then they can merely get personnel from abroad with the IT ticket (sorry visa) scheme.

Basically, I bet I could do any of the jobs the 'body shoppers' lot can do, cheaper, and with a better level of service (I fancy) - well at least I have the skills that I say I have.

But no, I have to hunt around for autonomous projects, trying to design products, trying to sell those products to clients (if I'm lucky while working on a project that would benefit greatly from using such !¬)).

- I have no huge marketing machine behind me.

- I don't have reams of salespeople making sure that work/money is coming in.

- If I f*ck up, I haven't got an understanding Government to bail me out.

All I've got is my skills (which will probably go rusty when I can't afford to pay for training), a little aptitude, and the ability to get on with people and not take them for every penny I can get.

So how is that fair to me? I have got a 'few irons in the fire' with respect to product work, and I will need assistance at some point. But one thing is for certain - without the consultancy work (cheers Andy) to support the times between consulting, when I actually manage to get my head down and do some product work; then those products will eventually become redundant, and/or be developed by someone else.

A hundred people command good wages (and therefore pay good tax) because of one man's refusal to be forced into being a small cog in a multi-national's wheel, for having a bit of gumption, and for taking a huge risk. I know for a fact that for the first 5 years of the business, he and the other directors had to put up their houses as collateral before the bank would entertain any form of company overdraft. Limited liability my ar$e. Only the big companies can enjoy such legal protection, once the banks feel that they are a safe investment.

I would also like that status, I am prepared to take the risk to achieve it. But at every turn, I feel as though I am being kicked in the nuts repeatedly for trying to be that which Tony et. al. claim to revere so much.

Cheers New Labour, and thanks for all the fish!