Now by no means all those people will be paid without employer’s NIC being settled, of course. And it is also true that as result of being an offshore employer ISS may not be liable to pay employer’s NIC.
Hmm. So, employers\’ national insurance not being paid on some wages to some workers.
So, who benefits from this?
There could be technical argument as to whether the person liable is the employee (who has been winning from these arrangements to date)
Oh! It\’s the employee who benefits.
And that\’s tax incidence folks. Who is it that bears the actual burden of a tax? Clearly, the same person who benefits from the absence of that tax.
At which point we can see the entire absurdity of the claim that the UK is a low tax country, can\’t we? For the real income tax rate is income tax plus employer\’s NI (plus of course, employees).
And we also get the perfect argument to do away with NI: just merge it all into one tax system. The largest benefit of which will be that no one will be able to say that we\’re a low tax country.