Employment status overview

[webberg]

In theory the equation is simple, even if the answer is not.

Is the economic benefit of a flexible workforce with expert skills and making their own pension and other arrangements, more than the tax that is allegedly "lost" through that workforce choosing to be self employed (or at least pay less tax than an employee)?

Given that the Government control the statistics, (and the OBR is laughably not independent), proving the above will be like looking for the space the needle took up in the haystack but which can move every time a new set of numbers is produced.

Perhaps a project for Christmas week (yes, my life is that exciting).

[DonkeyRhubarb]

In theory the equation is simple, even if the answer is not.

Is the economic benefit of a flexible workforce with expert skills and making their own pension and other arrangements, more than the tax that is allegedly "lost" through that workforce choosing to be self employed (or at least pay less tax than an employee)?

Arguably, there is very little loss.

Let's suppose you changed the tax code to extract £1Bn more in tax from contractors.

That's taking £1Bn out of the economy which could be spent on goods & services. Goods & services attract VAT. Goods & services create employment which attracts income tax and nics.

Net effect - the amount the Government would be better off, overall, would be a tiny fraction of £1Bn.

It's just smoke and mirrors, and mickey mouse accounting.