Reply to post: Re: It's time for a re-write ...

HMRC accused of not understanding its own IR35 tax reforms ahead of private sector rollout

Doctor Syntax Silver badge

Re: It's time for a re-write ...

5 years? Luxury.

Actually, this takes me back to a thought experiment. What if we were to make no differentiation between freelance and employee in income tax, NI etc. but treat the permanence of the job as a benefit in kind. No difficult tests involved. Someone on a zero hours contract would have no benefit to be taxed. Someone on a short term contract would have a little. A permie such as a tax inspector would have a lot. MPs, being somewhere in the middle, should be able to see the advantage. The benefit in kind taxes of the permies would pay for tax rates to be lowered. The system would be transparently clear to HMRC. How different from present would the tax distribution be?

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