Reply to post: Re: There are an estimated 4.6 million contractors in the UK.

UK political parties fall over themselves to win tech contractor vote by pledging to review IR35

katrinab Silver badge

Re: There are an estimated 4.6 million contractors in the UK.

If an Isle of Man company trades in the UK, it has to pay tax in the UK. Where offshore stuff works legally is where they move an economic activity offshore. That might be intellectual property rights, or loan financing to other members of the group. Or, Apple for example has their European distribution centre in Ireland, so there is a big warehouse there that receives the stuff from China and distributes it to the shops, both their own and third party retailers. It can work for bit multinationals, but for a one person band where the capital requirements are basically a laptop and maybe a car, not so much.

The division I work in looks after foreign companies that want to trade in the UK, so I do know a thing about the UK side of things. There may also be Manx taxes to pay, I don't know about that, but that doesn't replace the UK taxes.

Also, UK tax is 19%. So, even if what you say is true, the break-even position is £126,316. How many one person IT contractors earn more than that? Some, but not that many in the overall scheme of things.

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