Pennies and Pounds
For an independent contractor avoiding NI (12%) and whose employer is avoiding employee NI (13.8%) then the treasury is losing 25% of the gross salary up to about £60k . That's not pennies.
You could make valid arguments about where that "loss" sits in the system and whether or not the treasury is recouping some or all of it another bit of the tax system, but, as others in this discussion have noted, therein lies the problem - the tax system as it relates to income for individuals and companies is too complicated.
Biting the hand that feeds IT
