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No income tax as your 'salary' is less than minimum wage.
No NI for the same reason.
No tax of any kind in India either.
No VAT on anything you can get in to an Air India overhead locker.
No tax on benefits in kind like BUPA memberships or private school fees.
No IR35
No UK corporation tax or employer's NI for your company.
No Indian corporation tax either as your employer is incorporated in a S.E.Z.
No employment legislation protecting you from Dickensian working conditions.
The bottom line is that, for any given level of take home pay, an Indian will cost as little as half what a European will cost.
You were brave enough to stop lurking, are you brave enough to stand for election as an MP? Or someone like you?
That's what it will take to get parliament to change anything, somebody who cares either has to be on the inside or rich enough to "lobby" someone influential before anything will happen.
This default font is sooooooooooooo boring and so are short usernames
Can you message Malvolio about this. If you still have that pack I'm sure it could find it's way into friendly hands.
Absolutely. The original or a full copy would be more than welcome. Contact details on my website, www.lpwcs.com, no names needed. I can make very good use of it!
I've been lurking for a while. I can keep quiet no longer.
Rather ironically for a British citizen, I worked as a permie for an Indian outsourcing company at one of their client sites in the UK. It's worse than you think. A lot worse.
When I joined they mistakenly sent me the paperwork for new employees who are Indian citizens. This contained a plethora of bizarre questions about my UK visa details, home address in India, mother's maiden name and blood group. So far, so amusing.
I then got to the bit about taxation of UK earnings. My employer's Indian staff were paid like this:-
Their nominal 'salary' was less than the UK single person's allowance. Hence employees were liable for neither tax nor employee's national insurance in the UK. In fact, it was less than an Indian's tax allowance. Hence they paid no tax there either.
Over 90% of their income was paid in the form of 'allowances'. These MP style 'allowances' covered rent, food, breathing in and out etc.
"AH-HA", I hear you cry as one. "Benefits in kind. Taxable after 90 days in the UK during any one financial year". Dream on.
My joining pack informed me that Indian employees of the company were all granted an automatic dispensation from tax on 'allowances', applicable from the moment they set foot in the UK. All they had to do was complete a P11D each year and quote the dispensation details.
As the Indians were all legally employed by the parent company back in India, there was no corporation tax or employer's national insurance to pay either.
Like any other non-EU citizen, they could even reclaim VAT at Heathrow for any goods taken back to India.
Union rights? Forget it. I knew of two Indian blokes who were sacked and packed off back to the old country for trying to join a union.
Working time directive? Forget it. One of my colleagues collapsed after being forced to work 50 hours without a break.
Maternity pay? Forget it. You're pregnant? You're fired.
Racially aggravated assault? No it wasn't. Not if you don't want to be on tonight's flight back to Chennai.
So, to summarise:-
No income tax as your 'salary' is less than minimum wage.
No NI for the same reason.
No tax of any kind in India either.
No VAT on anything you can get in to an Air India overhead locker.
No tax on benefits in kind like BUPA memberships or private school fees.
No IR35
No UK corporation tax or employer's NI for your company.
No Indian corporation tax either as your employer is incorporated in a S.E.Z.
No employment legislation protecting you from Dickensian working conditions.
The bottom line is that, for any given level of take home pay, an Indian will cost as little as half what a European will cost.
Dodgy visas are only the tip of the outsourcing iceberg. Is there anybody, ANYBODY making a serious effort to do anything about this?
I know that companies like Tech Mahindra go to very considerable lengths to stop people finding out about the tax dispensation. Because I am British, I was physically disconnected from a teleconference by a manager in India when this was being discussed. Somebody outside HMRC must know this is going on.
Presumably Tory politicians won't touch it with a barge pole due to the inevitable accusations of racism that will follow. I would have thought that Labour would be keen to rescue the 'oppressed workers' being denied union rights though.
I think there was one comment about the BNP earlier in the thread. Involving them would be like arranging a home visit from Dr Shipman because your granny is a bit under the weather.
If you would like to PM me I am in contact with my local MP-who is a shadow cabinet member on this matter. I find it quite extraordinary that the PCG have not by now investigated this.
Last edited by DodgyAgent; 27 February 2010, 10:23.
Let us not forget EU open doors immigration benefits IT contractors more than anyone
If you would like to PM me I am in contact with my local MP-who is a shadow cabinet member on this matter. I find it quite extraordinary that the PCG have not by now investigated this.
I don't.
How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.
I I find it quite extraordinary that the PCG have not by now investigated this.
They have been and continue to do so. What they need is hard evidence such as this. They have some, and a large amount of anecdotal stuff, but every little helps
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