4 ms·
It's not a special employment status. As a contractor in the UK you have fewer rights (pensions, notice periods, unfair dismissal, etc.) than an employee, but u
by jsty 5y ago
It's not a special employment status. As a contractor in the UK you have fewer rights (pensions, notice periods, unfair dismissal, etc.) than an employee, but used to have not-inconsiderable tax benefits to trade off against this.
Thanks to HMRC reforms known as IR35, a lot of contractors are now considered akin to "disguised employees" and taxed as such - thus being taxed like an employee without the requisite legal benefits.
- nmeofthestate 5y agoContractors have a tendency to frame the gradual clamping down on their lucrative tax loopholes in hyperbolic self-pitying ways like this. Pretty savvy I guess.
- regularfry 5y agoThe net result is not so much that the loopholes have gone away, but that the contracts have. Employers are refusing to engage with the new IR35 system rather than risk getting on the wrong side of HMRC.
- varispeed 5y agoThere is a subtle change however that makes huge difference. Companies now can make anyone a contractor (deemed employee) as now the company decides about status and essentially create a workforce without any worker's rights. The "not-inconsiderable" tax benefits ended around 2017.
- Jenk 5y ago> Companies now can make anyone a contractor I don't think that's true. If you are enrolled on PAYE they can't just change you to a contractor.
- varispeed 5y agoThey can do that, it's called "fire and re-hire". The PAYE position ends and new contract position starts, that you can take or leave. Example: https://www.theguardian.com/business/2021/mar/28/a-kick-in-the-teeth-british-gas-engineers-face-losing-their-jobs-or-longer-working-hours https://www.theguardian.com/business/2021/mar/28/a-kick-in-t...