3 ms·
The governments found out that people are making too good money doing this. For example in the UK there is a term "disguised employment" thrown around and consu
by varispeed 5y ago
The governments found out that people are making too good money doing this. For example in the UK there is a term "disguised employment" thrown around and consultants being smeared as tax dodgers. This year they changed the law, so that company must declare whether hired person is a genuine contractor or de-facto an employee. There is a fine if they declare a disguised employee as a contractor, but not the other way around.
The effect is that companies now offer contracts that always place a contractor as a disguised employee to avoid problems with the tax man. As a result such consultant has to pay over 50% in effective tax.
Many good ones I know already looking to move overseas.