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HMRC's IR35 tweaks have 90% of UK's IT contractors up in arms

m0rt

"Taxman says pay your tax.

90% of people affected do not comply."

You work for the Daily Mail as a headline writer in your spare time?

Taxes are being paid, according to the law using a valid Ltd company mechanism that allows contractors to be paid via dividends, which incur tax, btw. This is the same benefit a company will enjoy. This allows other companies to benefit from their services. It is cheaper for them to use a contractor in this method, and allows for an excellent flexibility around on demand skills.

By making a contractor effectively be an employed person, without benefits in kind, who actually wins here? No sick, holiday pay, or protections, but hey!

No one would contract, or at least, no one would contract in this country. The amount to gain from IR35 isn't enough to offset the loss in value to all services who benefit from contractors.

TLDR - fair tax is being paid already. HMRC have a warped view of why LTD companies are not valid for longer term contracts.

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