Reply to post: Re: Employers NI

No help for IT contractors on IR35 tax errors

Anonymous Coward
Anonymous Coward

Re: Employers NI

I have no particular skin in this game, not being in the UK and all (nor being an independent contractor), but I think that's the whole point of all the upset - people with PSCs have, in fact, "set up one of their own", precisely because they didn't want to work for a much larger company (either directly or through a subcontracting umbrella company) as a conventional employee.

Based on the comments I've read so far, the legislation seems destined to just convert many small 1-man-band PSCs into nameless cogs in Yet Another Giant Subcontractor, and result in a net loss of jobs (see "offfshoring") - regardless of what it was intended to do.

The underlying jobs involved don't seem to be changing, but for the life of me I can't make any sense (aside from the Politics As Usual BS) of why a small PSC is effectively being barred from taking a contract that a much larger company can. If it's legal for company A to outsource a task, then it should be legal for **ANY** contracting entity capable of the job to take it, irrespective of size. If the resulting collective income/business tax revenues are not to HMRC's taste, then maybe the balance between the personal and business tax rates isn't what it should be.

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