State of the Market

[ladymuck]

The thing is many contractors are morally opposed to paying more tax even they are netting more. They still can't get out of the mindset that the extra tax should somehow be going in their pocket.

Many but not all. Lots of the many took part in tax avoidance schemes.

I wonce worked out that my total taxation via my Ltd Co was just 2k a year less than PAYE. A small benefit that I feel is a justifiable exchange for no requiring all the extra gubbins an employer has to provide. For me, the main benefit is being able to decide when I get paid, so I can tweak my income according to need and only pay tax when I draw it out the company.

I have never had any issue with paying tax. What I dislike is being taxed like an employee, who never has to worry about ErNI and AL deductions when working out their take home pay, yet getting none of the rights and protections afforded to an employee.

Until the contradictory treatment of off payroll workers is resolved, there is inherent unfairness built into the legislation, especially for those who are more vulnerable and are being exploited by dodgy clients/employers.

All I can see with the ErNI increase is more perm positions being moved to off payroll roles via umbrellas. HMG / HMRC won't care because they're still getting the tax income but the employee will be shafted.