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>IR35 wasn't about fairness. It was about shutting down small, skilled independents so big firms could lock in the profit stream That is way too sophisticated.
by munksbeer 1y ago
>IR35 wasn't about fairness. It was about shutting down small, skilled independents so big firms could lock in the profit stream
That is way too sophisticated. The simpler explanation, governments look for ways to squeeze more tax out of people. IR35 was an easy win for them, since it typically impacted only people who were effectively already employees by using tax loop holes to pay less. I know, I was one of them.
- varispeed 1y agoThat's not a simpler explanation - that's just swallowing the official propaganda. IR35 was never about raising tax. If it were, big consultancies would have been a primary hit, as this is where actual tax avoidance is. You may have accepted the "I was one of them, using loopholes" framing, but running a small business isn't a loophole - and repeating that myth only props up the system that shut you out.
- munksbeer 1y ago> but running a small business isn't a loophole If you run a genuine small business, then you're not in IR35 because you'll be doing jobs for multiple clients. Come on, let's not pretend here.
- varispeed 1y agoIR35 only applies if the worker owns the business and it's irrelevant how many clients they have. A big consultancy can have just one client for years and IR35 won't apply.
- MattPalmer1086 1y agoI think it is entirely possible to run a genuine small business and only work for a single client at a time - given that what is being sold is the time and skills of the owner. Certainly true that working for multiple clients simultaneously pretty much insulates you from being inside IR35 though.
- munksbeer 1y agoI'd venture that 99% of tech contractors in the UK were doing the same jobs as permanent employees, at the trade off of more pay, lower tax, and supposed lower job security. That is what I was, and every single other contractor I knew.