Quote:
Originally Posted by ianch99
You seem to be constrained by the thinking that we have been conditioned by for decades namely, the only people you can tax (at the higher rates) are the PAYE masses. These poor smucks have been taxed to the hilt by the last Government and yet there is no debate about the other, more appropriate, sources of taxation that could be leveraged with a little creative thinking.
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I'm not constrained, those who decide how people are taxed are the ones who are constrained. Taxing those on PAYE is easy, it's lazy, it's taken at source, the profit can't be hidden in overheads so there's no way for the person to avoid paying it as they never get their hands on it to start with.
I don't think taxing wealth is fair either, if person A earns a £100 and invests it, and person B earns a £100 and spends it on drink and drugs, I don't see why person A should be penalised with a wealth tax because they are saving for the future.
I have been forced into PAYE, because one of my contracts was placed inside IR35 as a result of a blanket assessment of all contractors by a jealous and lazy civil servant. This means to satisfy HMRC I'm now being employed via a fictitious umbrella company to which I am paying fees. I'm paying employee and employer NI, Apprenticeship levy and I'm not able to claim any expenses.
As a result of the IR35 blanket decision, the end client has lost a lot of very difficult to replace resources, some have reduced the days working for the client and the day rate costs for those that have renegotiated have increased with projects delayed or in some cases scrapped.
I said no thanks to the renewal, and then they wanted to negotiate so I screwed them for a large increase to cover the PAYE costs, so they are paying more money and they are getting a lot less for it.
The contract is soon up for renewal, and I have made them aware that I will only agree a contract with a reduced number of days as I have one customer with work outside IR35 who wants to increase the work that I am undertaking for them.
The government and HMRC have been screwing small businesses by forcing them into PAYE, yes there was abuse of the system in many cases, but I would have been quite happy to provide the evidence to HMRC that I was providing a service via my company.
The last Conservative government hit small businesses as they are also an easy target and I certainly don't see Labour doing any different.