Darwinian selection in Government IT
"we desperately need a mobile, highly skilled workforce "
Completely agree. Yet the government for some unknown reason seems to think that the SME's and contractors are fleecing HMRC out of money and are doing their best to put them out of business. HMRC/the government simply refuse to see the bigger picture.
As a contractor, I spend the majority of my limited company earnings on the following: corporation tax, wages, dividends, expenses, savings for a rainy day.
Corporation tax goes to the government; wages covers normal livings expenses (mortgage etc.) and includes VAT, dividends (taxed), expenses such as petrol (taxed) and purchasing other goods and services such as living accommodation when working away from home (hotel or landlord is taxed on their earnings)....etc. etc. Savings will be taxed at the point when I am between contracts and need to live. So the majority of my companies earnings and expenditure is taxed in one form or another.
Instead of this, they are forcing government departments into the hands of multinational companies. Where do they pay corporation tax, probably not in Britain. These corporations won't have in-house resources standing idle to take up the slack, so they will have 3 choices, pay e.g. Indian third party IT companies to do the work, hire UK contractors to do the work, hire new permanent employees to do the work. Guess which one costs the least and gives them most profit and where the money won't be spent in Britain and won't gather any taxes in Britain?
Biting the hand that feeds IT
