Re: Anonymous Contractor
"I see we're still confusing legitimate contractors with the people IR35 explicitly targets
...
Can't believe we're still arguing about this shit. The law is clear. It doesn't affect all contractors. It affects employees posing as contractors.
"
The reason we are still arguing "about this shit" is because of the way IR35 is currently being enforced, deeming the contractor to be the party liable for the unpaid PAYE and NI.
Firstly, I agree if an employer is defining and treating a job post as employment, then that post should be taxed and benefits paid as if it were employment. The question now arises about the actual contract between the employer and the holder of the post. I just don't see contractors "posing as (a) contractor", a person is either an employee or a contractor; although I do accept that long-term contractors can go native and forget they are contractors and not employees, and that some employees can see themselves as internal contractors whilst maintaining all the perks of employment.
This leads to my second point, who is responsible for the situation where an employer engages a contractor to fill an employee job post, and thus becomes a 'deemed employee'? I suggest the party carrying primary responsibility is the employer, a secondary party will the agency who took the job description and put contractors forward for consideration, finally the contractor who accepted the post.
All good so far, until we look at how HMRC determine who pays what...
HMRC has todate determined that it is the contractor who is wholly liable for the employee and employer NI & PAYE owed, not the employer and so required them to be taken out of the monies paid to the contractor's company.
However, I suggest, if HMRC had done the sensible and deemed the monies paid to the contractor where equivalent to the net monies paid to an employee and thus the employer was wholly liable for PAYE and NI on the invoiced amounts, there would be less of a problem with IR35 - since employers and agencies would rapidly get their act together.
I see the main reform due to come in April 2020 is for the liability for employers NI to fall on the employer and/or agency and not the contractor; a small step in the right direction...