Ghandi's Flip Flops
Well-Known Member
- Joined
- 14 Aug 2009
- Messages
- 1,462
Thats a pretty skewed view.I think you misunderstood the point I was making. If you're a genuine contractor you're running a real business, and the two criteria I mentioned are easy to satisfy and all you need to prove it.
IR35 was brought in mainly because IT Contractors on long term contracts were really temporary employees and therefore not paying tax properly. It was a fudge to allow them and similar white collar "contractors" to continue dodging tax, mainly
It's simply not right that an employee on £100 a day is paying more tax than the contractor sat next to him doing a similar job on £300 a day
I've got no sympathy with anyone or any employer getting done under IR35 because they're engaging in tax avoidance. They're no different to non-Doms or those using tax havens.
Nothing illegal about tax avoidance, tax evasion however...
Plus the employee on £100 a day gets all employment benefits - paid holidays, sick pay, pension, maternity leave, training, redundancy etc etc
The contractor gets none of this, plus has to pay his own PL insurances, accountants, training etc, corporation tax etc etc
Doesnt seem right to me they should pay the same tax with none of the associated benefits
