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)