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You have to go back a little further to the late 70's to understand the origins. My post only relates to the agency model, apologies if that was not clear
Agent sprang up all over the place and used to supply people who claimed to be self employed to clients. Said contractors routinely disappeared and phoenixed and paid no tax, vat or NI. Legislation was passed to prevent this, opening up agents to those liabilities for not carrying out due diligence. Agents then changed their model to only deal with Ltds.
NL got in power and the big consultancies (esp via people like Timms) persuaded them we were all tax dodgers abusing Limiteds by taking advantage of the 'veil of incorporation', IR35, AWR, Conduct Regs, abolition of the Employment Agencies Act and regulatory licencing and the springing up of umbrellas etc all ensued and got us to the pig's ear of a situation we have at the moment.
Originally posted by d000hg
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Agent sprang up all over the place and used to supply people who claimed to be self employed to clients. Said contractors routinely disappeared and phoenixed and paid no tax, vat or NI. Legislation was passed to prevent this, opening up agents to those liabilities for not carrying out due diligence. Agents then changed their model to only deal with Ltds.
NL got in power and the big consultancies (esp via people like Timms) persuaded them we were all tax dodgers abusing Limiteds by taking advantage of the 'veil of incorporation', IR35, AWR, Conduct Regs, abolition of the Employment Agencies Act and regulatory licencing and the springing up of umbrellas etc all ensued and got us to the pig's ear of a situation we have at the moment.
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