Reply to post: Re: Go after the people who can't afford tax lawyers gears up for IR35 private sector crackdown – say industry folk

Tom Paine Silver badge

Re: Go after the people who can't afford tax lawyers

ALL governments want to maximise revenue without demotivating people from bothering to work or incentivizing them to leave the country and work somewhere with a more wealth-creation-0friendly environment. That doesn't make them evil, it just means they're trying to do their job.

I've always been permie though I've looked at contracting a couple of times I've some sympathy with anyone who has to do their own tax return, and having your financial chain jerked abuot by forces out of your control must be stressful and tedious.

That said... presumably if this change makes contractors worse off than they would be in permanent roles, they'll all pack it in and go switch to perm. Either employers will have to up contractor rates to compensate, or reconcile themselves to doing without extra heads and delivery stuff more slowly, or just hiring on more permies. (Given the ease with which permanent employees can be fired in the UK I've never really understood what the problem was with permies anyway...)

On the other hand if contractors still save more on tax than they lose in sick and holiday pay (and whatever other benefits there are, I don't know) , then they'll stick as contractors and carry on complaining, even though they're better off than the ppl at the next next on a permanent contract.

In summary market forces ftw.

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