Reply to post: Life goes on.

Royal Bank of Scotland IT contractor ban sparks murmurs of legal action

RancidRodent

Life goes on.

"contractors just need to man up and pay the same tax as everyone else."

Typical green-eyed permie nonsense.

Contractors typically raise twice as much revenue for HMRC as a permie doing the same role. A £45K PA permie will be paying about £20K tax plus another 5K from his employer.

A contractor doing the same role will charge about £100K, will raise £20K in VAT, will pay about £20K in corporation tax, will pay (admittedly small amounts of IC and NI) but will pay another £20K+ tax on his dividends - as well as having to pay an accountant (required by law) more money indirectly to HMRC.

So from the contractor, HMRC will be collecting close to £50K tax - more than the permie earns gross! The hiring company gets a no-strings worker without personnel overheads and future pension liabilities. The contractor gets more take-home pay - EVERYONE WINS - why are the so-called Tories pursuing Labour's spiteful green-eyed IR35 tax? This will destroy what's left of UK IT jobs and put many (usually Tory) contractors on the dole.

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