Reply to post: Re: Tories?

Any promises to extend rights of self-employed might win an election, hint Brit freelancer orgs

DontFeedTheTrolls Silver badge
Boffin

Re: Tories?

If the "employer" takes on a permanent employee they have to account for things like Pension, Sick Pay, Holiday Pay, Critical Illness , Training, equipment, line management (appraisals don't do themselves) and a myriad of other costs that add up to the Total Cost of Ownership of an worker. In other words Employers need to pay for the a lot of unproductive time of the employee that they don't need to pay for directly from a contractor, the contractor is accountable for all of that themselves.

So it is possible that the "employer" pays out less total cash to a contractor than the TCO of a permanent employee, worker contractor gets more take home, and HMRC gets more tax.

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