Reply to post: Re: Contractor exodus

Cringe as you read Horrible Histories: UK Banking Sector, sigh as MPs finger cloudy Big 3 as future risk

Justthefacts Silver badge

Re: Contractor exodus

Nobody said that the “contractors” (who were/are nothing of the sort) had it “easy”. We do say that it is tax-dodging. Yeah, one reason why most people didn’t go that way is being risk-averse, but can you explain why somebody’s personality trait should be rewarded by the tax system while doing exactly the same work?

Let me propose the following law to you, and see how you feel about it.

Companies who employ more than ten people, administering PAYE, should be allowed to “pre-spread” the income across their employees such that the income tax band to be paid is based on the average, not per-person. Companies can re-allocate some of the total tax saved to increase the salaries of cleaning staff well above minimum wage, to make it worth their while too. Everyone’s a winner.

Logically, what’s wrong with it? Contractors do their own admin, cleaning, HR. Just because permies choose to specialise roles within our company, making some people go into higher tax bands, why should we pay more tax on aggregate for the same total amount of income and work?

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