Reply to post: Re: Just asking (for a friend naturally)

It's happening, tech contractors: is pushing IR35 off-payroll rules to private sector in Finance Bill


Re: Just asking (for a friend naturally)

Its an known issue - Loss Aversion.

If you have the money in your account and you need to pay the tax man, then you feel like you are losing something that you own - your are becoming poorer. However if you pay the tax upfront and you ask for a refund you feel like you are getting a bonus. However it will be very challenging moving from one model to another.

In the old days, I could understand giving people 9 months after the tax year is finished to finalise their accounts and pay due tax. However in this digital age, it doesn't make much sense. I would be in favor of reducing this for all companies. The biggest and most complex companies will have very good tax systems and know precisely what they are meant to pay. That is how the manage to reduce their taxes. The IT systems that manage this pay for themselves.

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