Re: Pointless And Political
It's a tough life for the side that lost, I suppose.
10 posts • joined 28 May 2018
Sure, the best way is to make contractors pay the same taxes as an employee. Make the employer pay NI for the contractor as well. The negotiation for a higher wage to cover 'employee benefits' is left between the employer and contractor not the HMRC and the taxpayer. Completely fair. The contractor gets to keep on moving jobs and reaping all those benefits, except tax reduction.
The point is simple. Contractors on the whole sit next to permanent employees doing the same or very simlar role but earn more by changing their tax arrangements. This now changes the dynamic to not being able to pay less taxes, this is fair. The contractor now needs to earn the extra money, to make up for holidays/sick leave/bonuses etc by charging the employer more. If the employer is not willing to do that I can only imagine that is a negotiation that should not involve the HMRC nor the employee who pays their fair share of taxes.
They are the correct ones for people outside of IR35, not inside at the moment but many wouldn't agree to that either. Perhaps we really need to see dividend payments level with income taxes and the perks of offsetting travel/clothes/meals/ 10% of your home be enabled for all employees too.
The issue dear contractor colleague is that you screw the taxpayer to earn that extra 30% whereas the poor permie pays all the correct taxes. The permie and you would earn the same salary for doing the same job, you wouldn't be 30% better off though because you too would have to pay your taxes.
You can take a permie job and get all the goodies like holidays and sick leave unfortunately you will need to pay all the taxes to get it and the free ride the tax payer currently provides you will be no more.
If you are truly a freelancer then good luck to you but in my 25 years i have perhaps met 10% out of hundreds that fit the freelancer moniker.
If you are really worth it the business will pay you more, if they don't, well welcome to an appreciation of your real worth.
This is not a pay cut, this is the contractor having to pay the same taxes as the permie employee sitting next to them. Same job, same taxes. If you like the option to still roam and take up other employment there is nothing stopping you. Perhaps someone will up your rate, from what I see that is not likely to happen. Lots of public sector IT contractors ejected to the private sector, finally fair taxes are catching up with all contractors. Having worked on both sides I think equality of tax is a fair outcome.
If the EU has to punish people who leave what are they doing to the people that stay? Seems incomprehensible that leavers need punishment because surely they are leaving the good place? Think about it. It's best we leave, the kick up the backside will propel us into new, exciting and prosperous beginnings. Our own space agency, using our own encryption monitored from islands that we manage. Looking forward to it. The Euro will eventually make the EU implode. Best leave early and deal with the downturn from outside.
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