Reply to post: Lies

Court of Appeal ruling offers hope for UK umbrella firm workers chasing holiday pay

elsergiovolador Silver badge


The reforms are part of the government's crackdown on so-called disguised employment, where workers behave as employees but avoid paying regular income tax and national income contributions by billing for their services through personal service companies (PSCs), which are taxed at lower corporate rates.

This lie again. There is no such thing as "lower corporate rates". Small business pays taxes as any other business (except big corporations that have means to properly avoid paying tax).

Small IT companies do nothing different than big consultancies, except thanks to IR35 they are taxed on revenue (when most clients insist on having in-scope contracts) and have become less competitive. That was the whole point - to drive out competition.

If HMRC really wanted to tackle tax avoidance, they would have looked at those big consultancies that can properly offshore any profits.

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