Outraged contractors have slammed Labour’s policies on freelance work in the UK and claimed that the government’s stance threatens their livelihoods. A new survey from ContractorCalculator revealed the somewhat unsurprising findings that 88 per cent of freelancers, of which a large portion work in the lucrative IT sector, were …
I leave it as an exercise for the reader to discover the benefits of this arrangement.
"There is another way " .... By Anonymous Coward Posted Monday 9th June 2008 22:23 GMT
AC, those dodges would leave one vulnerable to trumped up conspiracy charges.
It's funny but my experience of the majority of permies is like your experience of contractors. It would surprise me enormously if you could tie your own shoelaces much less perform an IT function other than pressing the "ON" button but I digress.
New Liebore has systematically tried to screw pretty much everyone that earned more than the average wage since it came into power. How it took 2 years for them to get around to IR35 I'll never know. You will notice, however, that they didn't come truly unstuck until the had a go at the little guy by nicking his 10% tax band. All hell broke loose because they were attacking their "core vote".
If you aren't in their "core vote" and you vote for them then you are a MORON. Fortunately, a lot of the former MORON vote will have suddenly over the last 6 months had an epiphany and will henceforth not be MORONS and stop voting for New Liebore. They are now finished, defunct, an ex-party of government in waiting.
Hopefully, the Tories when they win power at the next election will have the sense to reverse New Liebore's anti-contractor stance and permit us to get on with our lives, earn our money, pay only the taxes we HAVE TO PAY and everything will be hunky dorey again.
trumped up conspiracy charges
AMFM, those "dodges", or "normal practice" as MPs call them, were taught to me by one who was working them successfully, and they worked for me for many years. Maybe partnership law is different on Mars, but here on Earth I particularly liked the "Pay no tax the first year" advantage and the "Year 2 never gets assessed" advantage.
Re: Giving up work due to fuel costs
This actually is not as unreasonable as it sounds.
I was working as a permie (IT Helpdesk) and the fuel costs slowly made it uneconomical to get to work. Over the two years I worked there, the fuel costs doubled and I was considering leaving the position due to the sheer economics. As it ended up, I was made redundant and found a job much closer to home.
That was about four years ago. Now I drive a third of the distance, spend 10 minutes door-to-door instead of about an hour, and can still afford to keep going to work, even in the face of four years of increasing fuel costs.
If it came to it again, I would be prepared to make the same decision. I do not live to work, I work to live. The jobs are out there. And, should I need to, I will find one that I can do that pays me enough to staive off starvation and not require me to sell off the children as indentured servants.
Paid more than permies ?
I think you'll find that they are mostly more experienced (and older) than their permie colleagues and if they _were_ to ever consider a permie role, it would not be in the same role, but several rungs higher up the corporate ladder, on a similar remuneration to their contracting rate.
Yep taxed as a permie, treated as a business. totally fair
Just to answer the ill informed comments on here.
Offshore payment has allways been illegal, you earn it here, you pay tax here. Unless of course you are a NL donor.
Any arrangement entered into primarily to avoid tax can be ignored and taxed as if it doesn't exist so setting up false management companies will just get you into trouble, plenty of case law to cover this. Its also part of the basis for IR35.
Unfortunately for all those permies that seem jealous of contractors the basis for most of the contractors financial arrangements were completely legal. Otherwise HMRC wouldn't have lost all but a few percent of properly contested cases.The truth of IR35 is it is just another tax grab.
If people truly believe businesses should pay the same tax level as employees then it has to be based on equality. Why should contractors pay employee level tax when Lawyers etc don't? They all sell their knowledge.
now my view.
However New Lie have managed to make it officially even more risky for IT contractors, you may have noticed all those visa holders popping over being paid peanuts, now they can't replace permie people legally, but Ms Primarilo & ms Hewitt feel its perfectly acceptable for people taxed abroad and surviving on generous expenses to supplant contractor businesses who were paying plenty of tax.
I'd actually collected 4 other customers but they didn't quite have enough work to pay my mortgage so the savings in my company fell to near zero.
I went back to the dark side in 2003 (when I found someone who would have me) after 9 months of eating Lidl beans. I was one of the lucky ones, we didn't lose the house. Though I did turn down £7 an hour supporting school networks it was insulting after years of study and experience, could have been my big break according to the agency.
As to stability most permies would strike if their paymasters cut their package by 10 - 20% or sack them, oh of course that is illegal for permies. Just happened in spades across London.
I used to earn twice the national average in a comparitively junior permie position before Labour came to power, now I find tanker drivers are turning down a pay deal similar to mine and I'm a few steps up.
Small wonder there is a skill shortage in IT, intelligent students see the future of IT as a career of lower wages and more round the clock support. They think stuff it I'll become a salesman and improve my Golf handicap on Friday afternoons, while IT wonder if they will see their family that weekend before flying off to sort out another mess some suit created.
Bitter moi? never! ps I have only spent about an hour awake with my family since Wednesday.
Problem is I love IT work and at my age, I can't retrain as a gigilo my other career choice not sure the wife would let me either.
All those that think contracting is an easy life then tell me once you have filled the pot, if not get off and let the real men & women use it.
Paris, well because she has low barriers to entry like IT. (allegedly of course)