Reply to post: Re: Simple Answer

Tech contractors begin mass UK.gov exodus in wake of HMRC's IR35 income tax clampdown

TheVogon

Re: Simple Answer

"The reason why this legislation is being brought in is because the vast majority of contractors actually work like their inside IR35 but then arrange their tax affairs exactly like their outside IR35 "

IR35 is about disguised employees. The vast majority of contractors are not disguised employees, but are self employed and work with additional risks and across multiple employers over time. The fact that IR35 isn't very good at catching those who really are disguised employees is another issue, but don't tar all legitimate contractors with the same brush...

"And when the playing field is level for everyone there's no need for "schemes" like IR35."

There are good reasons for self employed contractors to pay less tax so there is unlikely to ever be a level playing field. They have much higher employment risks and fewer benefits. If they got the same money, everyone would want a permanent job instead.

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