colonelpurple wrote:
Firstly, I dont think you understand how IR35 works. Non-permanent contracting staff under IR35 pay more then 10% more tax then permanent staff. Its nothing to do with tax rates. Its because they have to pay NIeers as well as NIees, which permanent staff dont. This is completely unjustified and wrong.
Secondly, temporary staff should be compensated with better tax conditions due to the reasons I listed above. Just like workers are on lower income, or domiciled aboard. You might not agree with this, as permanent employers dont really understand the idea of having to find a new job every six months. But as I said, an efficient developed economy needs project based staff. And to facilitate this insecure way of working, needs to provide an incentive. We can get rid of it with spite, but our economy will lag behind other developed economies.
You think wrong. I made my money from the business. I know how it works and all the scams. Employees cannot pretend to be a company and reduce tax by paying family members or take dividends or claim travel and meals for going to work. Force contractors to be on a fixed term payroll at a slightly higher rate. Do not allow them to claim expenses or declare dividends.
It was quite clear in your previous post that you don't know how IR35 works
Again
So you are happy that temporary workers with no job security or benefits, pay 10% more tax then permanent staff, and you say the employers should just pay more to help out the government
Completely disagree. Cruel. Unfair. Unjust and unworkable. We see reality kick in now
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I know exactly how IR35 works. I employ staff in compliance with IR35 both on and off payroll though obviously not in the same roles!
IR35 in my experience is a pain in the ass to manage from an employer perspective, but it has largely successfully prevented sole traders using tax loopholes to prop up their own personal profits at the expense of the taxpayer.
Previous to IR35 it was extremely difficult to employ someone full-time to a role, because nearly everyone was using a sole trader arrangement to avoid tax. This was the primary use of sole tradership. And honestly it sounds like that’s the position you want to return to.
Now, because of IR35, I have a wider group of people to employ full-time, and in many cases the sole traders have gone on to create actual companies employing other people, instead of personal tax avoidance “companies”.
The HGV driver market is long overdue a shakeup from what I’ve seen and heard so far, and delivery shortages are part of that shakeup. I’d the positive changes I’ve seen to pay and conditions in my industry are replicated into that market, that’ll mean everyone is better off, and not a tax dodge in sight.
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Utumno wrote: ↑Sun Oct 03, 2021 11:56 am
I know exactly how IR35 works. I employ staff in compliance with IR35 both on and off payroll though obviously not in the same roles!
The HGV driver market is long overdue a shakeup from what I’ve seen and heard so far, and delivery shortages are part of that shakeup. I’d the positive changes I’ve seen to pay and conditions in my industry are replicated into that market, that’ll mean everyone is better off, and not a tax dodge in sight.
My experience is in I.T. where the majority of contractors work via a limited company (and often via an umbrella company) and never employ any "real" people,
They pay themselves c£10 an hour and then employ their wife and children who do nothing, to distribute their £400-£500 a day charge rate. They claim subsistence expenses etc. The rest they take in dividends. They are nothing but temporary employees who use a structure to limit tax. IR35 was originally aimed at these higher paid people and not HGV drivers, who unlike I.T. contractors appear to be exploited.
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