Ah good job HMRC know the difference between their Arse & their elbow.
"HMRC reckons that only one in 10 contractors in the private sector who should be paying tax under the current rules are doing so correctly. It estimates the reforms will recoup £1.2bn a year by 2023"
Hmm remind me again how much of the £6 billion COVID grants etc fraudulently claimed from HMRC that ended up in Organised crime hands should not have been paid out? Oh yes none of it!
Fraud of 8.7% by a conservative estimate is not as bad as those filthy contractors paying their hotel bills to work away before tax.
Hint for HMRC - the elbow is the bit that doesn't normally smell of poop!
Back when I was a contractor the fear was that HMRC would make up an imaginary figure then pursue you to bankruptcy unless you had legal representation, then they normally eventually lost the case. HMRC have a 35% win rate at court (last 20 years) and a thousand+ cases they didn't take to court. See CUK's figures.
Many people decided to become employees to avoid these risks, I for one pay less overall tax than I did then, earn less so contribute less to the local economy.
Many multinationals (the sort of clients I had) are incorporated abroad and due to transfer price manipulation and internal fees avoid paying corporation tax or buying products in the UK
"You don't actually think they spend $20,000 on a pound of coffee, $30,000 on image rights, do you?"
If you are caught by IR35 paying for your own training (in the UK) as I did is after tax so much for retraining the workforce.