Ask any contractor what they dislike the most and they will all say “paying tax.” I guarantee it.
That is why a new report that has just been released is sure to become a hit among contractors around the country.
The reason? Because this report has the simple message that many have been waiting to hear:
“Pay less tax and scrap National Insurance”
I can hear the crowds of contractors cheering as those words are spoken, but, in my opinion you might to hold on a bit before firing your contractor accountant and ripping up your tax form.
A revolution on the cards? Maybe, but until the government are convinced to change anything then this report remains what it is right now…just a few pieces of paper that have been stuck together.
You know what I usually do with these reports, right? “directly in my bin” is what I normally say after flicking unenthusiastically through a few pages before turning my attention to Jeremy Kyle and the latest “Which Chav is the Dad?” Episode.
So to recap…reports usually go in the bin, but this recent one hasn’t yet, mainly because I have not read through it. Just a quick glance.
I hear good things though, and some experts are even saying that by self employed people paying less tax and not paying any National Insurance at all, then it could actually mean Billions more for the UK economy.
Even better, for those contractors out there in the higher income bracket, well, your tax obligation would be brought in line with that of an average income.
You would still need the services of a contractor accountant of course, but your tax bill would get less expensive.
It is actually a left leaning “think tank” (not to be confused with a fish tank) that has come up with this report, and what they are basically saying is that everyone should pay the same tax, no matter what your income.
A bit like the communist ideology I suppose..”we are all equal, and equal pay for all, no matter what your skills.”
Sounds good, especially when you are reading it in a text book and being cheered on by all of your fellow communist college friends..but what about when you get in the real world, what then?
Paying less tax and no National Insurance would be great of course, but the problem is that it needs to be based on reality.
So it is with great regret that this new report is going the way of all those other reports that have found their way to my desk…straight in the bin.