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by GeneralTspoon 1046 days ago
> This type of thing happens all the time. In the UK you can work as an independent contractor for years then one day HMRC will randomly decide to make a case that you're were actually an employee the whole time and should have been paying a significantly higher rate of tax.

I assume you're referring to the IR35 laws - which were brought in specifically to combat a form of tax avoidance by highly paid contractors on long-term projects, who functioned exactly like employees (by being a contractor instead of an employee you could save a whole bunch of tax in the UK).

Yes, IR35 is a complicated pain - but everyone and their dog in the UK tech scene knows that contracting is/was the way to pay less tax. So it makes sense that HMRC is attempting to close the loophole.

> Uber paid their taxes as they understood UK tax law.

They were specifically attempting to use a loophole to avoid paying VAT the standard way (by claiming they're a "Tour Operator"). They've already lost multiple cases around the world for doing similar bad-faith interpretations of laws - so I think in this case it's Uber doing the exploiting.

1 comments

>>Yes, IR35 is a complicated pain - but everyone and their dog in the UK tech scene knows that contracting is/was the way to pay less tax.

"pay less tax in exchange for less job security and fewer benefits." Fixed it for you.