October 23 2020 at 10:22 am
If it is caught by IR35 (and almost all of those roles should be and should have been even prior to public sector contract changes) then there isn’t much tax advantage that I can see to the contractor. The whole £1000-£2000 per day will get netted down after allowing for ER NI, EE NI and PAYE. What it does do is keep this contractor off any employment benefits, including pension.
Many contractors see these conditions as the worst of all worlds – mind you there are plenty who could cope with that indignity for up to 2 big ones a day.
Or can you see how the contractor can game the system?
Richard Murphy says:
October 23 2020 at 10:34 am
But why not employ them then?
Why play a game that is wholly unnecessary and too closely related to tax abuse?
Because pensions, holiday pay, maternity leave and all the rest for a contract that is going to last 5 months…..
Or, as we might put it, if you’re going to make employing someone expensive then you might well want a trapdoor in the system when you want to only employ someone for a few months…..