- Most IT contractors are genuine businesses, essentially self employed people within limited company structures. Because of the personal investment and consultancy nature of their work, they should be recognised as such and not penalised under IR35.
- Due to tax loop holes contractor have enjoyed tax breaks some would consider unfair. However, IR35 is NOT the way to resolve this. Many alternative compromises have been suggested, but ignored by the government.
- IR35 will have a negative impact on the UK IT industry, particularly those areas that have the greatest lack of skill and thus highest demand - We refer directly to the E-Commerce industry that the government is so keen to promote, but which will sufer greatly under IR35. Even the governments own E-envoy is arguing this case.
- We believe people should pay their fair amount of tax and NI and that this should include contractors that use the corporate structure to abuse the tax system.
- We also believe that if a one man contractor company is a genuine business it should be allowed to invest it's revenue in training and company costs. If it retains profits for future growth then those profits should not be taxed as earned income. Those who retain profits are genuine enterpreneurs and should not be hit by these measures.
- The arguments about no holiday, no pension, no sick leave are, in our opinion invalid, since we are not employed, we are genuine companies. It is also why contractors command high rates. As for not receiving benefit between contracts - of course you do not - you are a business.
