Re: Contractors already pay more tax
You forget that there is a 20% VAT charge that goes to HMRC
So that no longer gets generated so HMRC lose 20% straight off.
Contractors generally come in when it has gone pear shaped and help to clean up, they then leave.
The rate reflects this, you cannot compare permanent staff and contract staff.
So a better example maybe
Contract fees of £75k + £15k (20% vat) = £90k
£15k direct to HMRC and then the other taxes
Roughly HMRC get £35k from the freelancer
Same role permanent will be for around £40k
Roughy HMRC get £16k from this employment
A LOSS of £19k
Now the jobs go offshore as its cheaper now and less risky of battling HMRC
HMRC get £0.00 nil nothing nada
So please tell me again how this makes sense.
Contracting WAS open to anyone who wished to do it, the people complaining never tried it or failed at it they just believed the lies peddled out.
Try reapplying for YOUR job every 3 months lets see how you get on.