I think the government is cutting its own throat as any gains in received NICs will be more than offset by losses from the following:
1. International companies will (and are planning to) move their software development and design outside the UK.
2. Senior contractors/consultants in the main - such as me - are looking toundertake individual assignments for clients - but we will work less daysper year and earn less as our expenses will be higher. (better than workingthe same and letting the taxman have it).
3. One of the issues which seems to have been ignored in the articles I haveread on the subject is that contractors working away from home haveexpenses. Particularly living in the North and working in the south, accommodation and petrol and meals exceed £300pw.
These would now longer be allowed as expenses if one is "considered an employee". According to the IR, these and training, office expenses etc will now have to be accommodated by the 5% of income which they will allow for overheads.
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