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Huh, in my workplace we use a lot of contractors and also use consultancies. They serve different purposes, for us at least. The contractor market is hardly d

Huh, in my workplace we use a lot of contractors and also use consultancies. They serve different purposes, for us at least. The contractor market is hardly dead as a result of IR35 - even though it is a huge pain in the ass for everyone. I never said that running a legitimate business is a tax avoidance scheme. But I can count on the fingers of one hand the number of contractors I know whose legitimate businesses pay employers national insurance (if outside IR35). From HMRC's perspective, that is a gap they would like to close. Anyway, good to hear different perspectives - we aren't going to agree, but I enjoyed discussing it with you.

varispeed 1y ago
"The contractor market is hardly dead" - no, it's captive. People still need income, but now they're herded into umbrella schemes or inside-IR35 roles that offer none of the rights of employment and none of the autonomy of business ownership. Independence wasn't taxed - it was dismantled. Contractors and consultancies are the same thing, just at different scales. Both supply labour-for-hire. The only distinction is scale and ownership. IR35 only applies if the worker owns the business. That's protectionism. The employer NIC line is a classic diversion. Taxes aren't moral based on the label. What matters is total contribution - and many contractors paid more in combined personal and business tax than consultancy employees and their firms ever did. "From HMRC’s perspective…" That perspective is the problem. It's not built to protect the taxpayer and foster fair economy - it's built to shield corporate structures, outsource enforcement risk, and target the smallest players who can't fight back