Staff issues

[muttley9050]

I don't see why though. Provided everyone pays their dues and both sides are happy with the arrangement.

 

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Because the government (hmrc, ni etc) earn a lot less out of your average self employed person.

[aspenarb]

Because the government (hmrc, ni etc) Steal a lot less from your average self employed person.

 

Fixed that for you

 

Bob

[skyhuck]

I don't see why though. Provided everyone pays their dues and both sides are happy with the arrangement.

 

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The reason self-employed people pay lower tax is because the are considered to be less secure, they don't generally have regular guaranteed work. They are taking risk and often need to do a good deal of unpaid work such as quoting and maintenance. I think HMRC also see self-employment as a stepping stone to building a business that will employ others and thus generate more tax, so the more favourable tax situation is to encourage this.

 

Those who do not fulfil the above and simply try to take all the positives of SE but few of the negatives are not really playing the game fairly.

[Joe Newton]

The reason self-employed people pay lower tax is because the are considered to be less secure, they don't generally have regular guaranteed work. They are taking risk and often need to do a good deal of unpaid work such as quoting and maintenance. I think HMRC also see self-employment as a stepping stone to building a business that will employ others and thus generate more tax, so the more favourable tax situation is to encourage this.

 

Those who do not fulfil the above and simply try to take all the positives of SE but few of the negatives are not really playing the game fairly.

I was under the impression that we all paid the same tax, 20%. Of course a SE person can claim back work related expenses, which wouldn't be incurred as PAYE.

 

Unless you mean NI contributions being lower. As I understand out that's to cover lack of SSP etc

 

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[kevinjohnsonmbe]

Fixed that for you

 

Bob

 

 

🎯bullseye!

 

👍🏻

[skyhuck]

I was under the impression that we all paid the same tax, 20%. Of course a SE person can claim back work related expenses, which wouldn't be incurred as PAYE.

 

Unless you mean NI contributions being lower. As I understand out that's to cover lack of SSP etc

 

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A self-employed person pays tax on "profit", where as employed people pay tax on income, there is a BIG difference. And there is also NI, which is now just income tax by another name.

[Joe Newton]

A self-employed person pays tax on "profit", where as employed people pay tax on income, there is a BIG difference. And there is also NI, which is now just income tax by another name.

Is an employed persons wage not purely profit?

 

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[matelot]

Other countries, like France, have went down the socialist road and given workers a lot of rights etc. it just means that French employers are unlikely to build factories in France and employ the French.

 

I think we all know that the self employed system is getting abused. However if a government tried to stop the abuse a lot of people would become unemployed...

[matelot]

I'm presently "self employed", in some weeks I earn the same as I was earning in a month being a salary monkey.

[skyhuck]

Is an employed persons wage not purely profit?

 

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I would argue not.

 

Working for a living can be pretty expensive. The cost of getting to work. Clothing for work. Washing work clothing, etc.