TwoSheds
More sheds (and tiles) than you, probably
- Joined
- Feb 12, 2014
- Messages
- 13,755
I was a contractor working for Central government at the time. HMRC didn't have enough established tax experts so they used Deloitte, KPMG, PWC and Accenture to provide support. Those companies helped draft the IR35 legislation which left HMRC short of people with key skills as the contractors there were forced out. Who filled those spots? People from Deloitte, KPMG, PWC and Accenture on much more expensive day rates.
Same across government in other departments. I genuinely don't believe IR35 changes made any difference at all to available funds. The tax take may have gone up, but the cost of delivering government services also went up.
The cost of delivering all services went up. Temporary, skilled staff are critical in engineering in particular. In the design and development phase of producing a car for example, you need more people and different skills than what you need once you're in production. Contractors used to provide that but a lot of companies are shit scared of hiring any now, and hiring and firing employees in the same way as you could contractors is a lot more expensive and time consuming.
I think it could well be contributing to the poor state of the economy, but in the faecal hailstorm of economic idiocy that has been the last 14 years it's really quite hard to pick it out!
Anyway, it's by the by, rich people don't pay enough tax which means ordinary employees have to pay too much, and it became pretty clear to me after having been a contractor.