Contractor UK Bulletin Board - View Single Post - BN66

DonkeyRhubarb · 30th April 2008, 17:21

Up to now, no-one has mentioned the moral argument about tax avoidance, so I thought I'd get in first.

If you believe that contractors should pay the same tax as everyone else then you are obviously a better person than me. However, I haven't come across many contractors who share this view, and most people I know have taken one route or another to circumvert IR35.

In any case it is not a level playing field. Contractors may be highy paid but that is partly compensation for lack of security. Moreover, if companies didn't see the value in using contractors then they wouldn't engage them. It is a 2-way street. Companies are willing to pay more for skills and flexibility. In any case, rates are market driven and we all saw what happened after the dotcom bust. How many employees do you know who would take a 50% rate cut on the chin like some contractors I knew!

If you compare contractors with highly paid employees on a similar renumeration, then that's not a level playing field either. Employees don't have to stump up 12% uncapped NI.

You may think that some of the more aggressive schemes are a step too far but, before you get on your high horse, remember a large section of the public would probably take offence at how little tax you pay as well.

End of rant.

30th April 2008, 17:21	#30
DonkeyRhubarb Fingers like lightning Join Date: Mar 2008 Posts: 633	The moral argument Up to now, no-one has mentioned the moral argument about tax avoidance, so I thought I'd get in first. If you believe that contractors should pay the same tax as everyone else then you are obviously a better person than me. However, I haven't come across many contractors who share this view, and most people I know have taken one route or another to circumvert IR35. In any case it is not a level playing field. Contractors may be highy paid but that is partly compensation for lack of security. Moreover, if companies didn't see the value in using contractors then they wouldn't engage them. It is a 2-way street. Companies are willing to pay more for skills and flexibility. In any case, rates are market driven and we all saw what happened after the dotcom bust. How many employees do you know who would take a 50% rate cut on the chin like some contractors I knew! If you compare contractors with highly paid employees on a similar renumeration, then that's not a level playing field either. Employees don't have to stump up 12% uncapped NI. You may think that some of the more aggressive schemes are a step too far but, before you get on your high horse, remember a large section of the public would probably take offence at how little tax you pay as well. End of rant.