Re: Darwinian selection in Government IT - OH PULEASE STOP YOUR MOANING
"Maybe am missing something, "
Yes, you am missing something. Back around the year 1996 I used to work as a contractor to government programmes as a self employed sole trader. It suited me and it suited my clients. Accounting is easy, tax is easy, determining one's tax status is easy. Then the government stepped in and said that no government department should use self employed sole traders (This is why your idea won't work) so, around 2004 I had to stop being self employed and become a Ltd Co. This was later reinforced when the government decided that they only people who could get security clearances must be sponsored by a Ltd Co and when CESG decided that the only people who could get accredited as security consultants must be sponsored by a Ltd Co. So far, so straightforward and legal.
Now let's deal with your claim that "seems to me the whole thing has been a scam to let well paid IT people avoid tax and to let the public sector get away without paying national insurance, handling paye and paying pension contributions."
No one gets away without paying NI, PAYE, pensions contributions. Nor do "well paid IT people" avoid tax. We pay all taxes due or we get reamed by HMRC. There are no tax loopholes, no shady deals, no bizarre tax backdoors. That is all in your and the politicians' imagination.
We have the following choices:
1) Pay a salary which is subject to PAYE, pension and NI (employees and employers).
2) Leave money in the company, in which case it is profit and is subject to Corporation Tax at the current rate.
3) Take some money in dividends, in which case it is subject to dividend tax.
The rates of tax are about the same in all cases, around 30-38% for all tax payers earning more than a few thousand pounds a year.
You are quite frankly talking in such a manner that when you sit down your voice will be muffled.