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The truth is that these Ltds were vehicles to avoid taxes, not real businesses. These contractors were effectively employees that managed to get payed in a way
by mmarq 4y ago
The truth is that these Ltds were vehicles to avoid taxes, not real businesses. These contractors were effectively employees that managed to get payed in a way that allowed them to avoid taxation. I know people that payed close to 7% total tax before IR35, as much as somebody earning 15K per annum.
IR35 doesn’t prevent real businesses from operating as usual. It prevents masked employees (people that attend standup, have a company email, have an account on Teams, effectively report to a manager, etc…) from avoiding taxes and claiming iPhones and PlayStations as expenses.