I spar.

There's gotta be some positive.

It's I really wanted to try and be.

I'm biased, you know, Our older I wanted to be fair.

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I wanna give you my forts on I.

R.

35 with this video.

I really wanted to be unbiased.

I don't want to just sit there and go Jenna what I offer.

If I was bad, let's light it off.

Let's say, Yeah, this is This is the end of the world kind of stuff really brought, but try to be unbiased about our 35.

It's tough, isn't it?

So what is?

I are 35 so I are 35.

Stands for Inland revenue are called for five.

Well, I wanted to have a quick look at the government website, and we actually see that focus, but literally it comes out as I are.

35 is a piece of legislation that allows Hmrc to collect additional payment or a contractor is an employee in all but name if the contractors operating through an intermediary, such as a limited company on Dhe.

But for that intermediary, they would be an employee.

Their client, I are 35 kicks in I R 35 in essence, is attacks that's coming into tax contractors.

The idea of it being the contractors at the moment are doing work on behalf of companies on paying less tax for a job in any other walk of life.

They would.

They could do it by being employed for the company.

The only people exempt for nigh are 35 basing people who wouldn't who would do a job that that company, no way shape or form would facilitate as an employee of the business that baseball is an external resource to do the job.

So the idea is we're not going to allow them to do it anymore.

There's a loophole there, Onda.

Unless the company can demonstrate this employees it would do a job or is doing a job has absolutely nothing to do whatsoever what the company do in any way, shape or form.

And they couldn't have a permanent employee doing it, and therefore they need to go to an external company or an external resource to bring that ability in.

Because it's not just not some of the company would do normally.

That's the only instance that they would be exempt from it.

I've always gets what you go turbo tax.

That's the idea of where I are 35 comes in.

It's basically to cover up a loophole when a problem comes of I R 35 really in the companies and looking at it and going, we've got this contractor on board bringing these guys in.

You've got skill set that I wouldn't normally have yet the government of going, Yeah, that kind of ease.

I are 35.

Unfortunately, they can do that job for you could employ some of this.

You could employ someone for that, so you get in instances where people are basically saying this is not something we would employ.

It's completely ridiculous.

Yet the government ago in yeah, that kind of easily or or four i R.

35 come live in April 2020 to the private sector is already actually being involved with public sector for a couple of years now.

So what is?

I are 35.

Really?

Well, look, I'm gonna be honest with you.

I think it's based in number excuse to bring a taxi in Australia.

So is what the government say I offered five is And there's my own opinion.

And what I think I'm all for five years.

I c i r.

For five.

Realistically, as enough attacks that the government can put on you, you've got to bear in mind is already taxes on income tax corporation taxes, businesses, health care, pensions, inheritance funerals, attacks on death pain, car tax, road tax, TV licenses basically almost attacks, isn't it?

The tax on bloody everything, it seems if we're already paying enough tax people prying the rough times if you're an employee of the company, got a very minor pain tax for this paying tax that point taxi everything.

And if you're a contract here already, Avenue declare your inland revenue tax in Lear for your tax returns and attacks on my are 35.

We're not talking about small tax.

We're talking about 2040 maybe 50% depending on the amount of rain depend on amount of income they would have.

You're basically paying the tax on.

It is if you're a permanent employee of the company.

Now, that is a massive amount of money for a contract to absorb.

Some people might say, Well, contractors, they get paid more money.

Why am I a Zen employee of a company paying tax paying 20% 4% 50% contracts, getting away with it.

Good.

A very minor lot of contracts will spend a lot of time out work.

Now you're in a permanent role.

You're getting paid a salary guaranteed every single month.

You might get paid.

If you're even hourly rate, you might get paid overtime, bonus wherever, and you get certain benefits of that company.

Your contractor job security.

Yeah, I got no choice.

Security could get uneven, like basically the contract.

We can't.

Whatever reason there's plenty of loopholes in contracts is all very well going.

Well, they get paid more money, but that extra money is gonna facilitate them when they're out of work.

The issue here is gonna be if you're a contract, are you really gonna be carried on doing contract when you're thinking about going to permanent work for someone I'm gonna end up getting the same money as I do when I'm a contractor.

Why would a new contract in the first place?

But if you're a company, it needs someone to go and do a legitimate contract for them.

And you can't find any contract because the real permanent employed or you've all of a sudden I gotta pay him such an extraordinary amount of money Now t tempt them away from going abroad.

How you gonna do that?

It's a massive issue.

It's just for the other part.

I our faith, is gonna impact the companies themselves.

Cos at the moment are basically having to pay quite a high amount of money to contract to get him on board, do a particular job.

But you wouldn't be out to get that skill set in unless you paid someone a decent amount of money.

Now, theoretically, if the contract's gotta pay the tax anyway, it doesn't make any difference to the company.

But you've got a very minor is a massive skill shortage in this country.

If those same contractors of thinking right, well, I don't fancy paying 24 year, 50% tax in the UK hanging them in my skill set to quite in demand abroad, they could leave the country if you've got a shallow talent pool already in this country on that talent pool was shallow enough fighting to warrant people being able to be paid high volumes of money because they're a good because they're so in demand and therefore they can be a full time contractor.

And you have got broad known that money's just gonna shrink the pool of talent even more.

I are 35 actually only live in the public sector, and some people say I was working for the public sector is fine.

There's no problems of it gets in a right.

The public sector is funded by the tax payer already.

So basically, the taxpayer is paying for the public sector to employ contractors who would pay more tax.

There's been paid back in the system to provide a tax that's a big looper.

Stuff it, Nick.

That's a big loop.

I can't even get the words around that it kind of works because the public sectors already funded by the tax payer with private sector ain't funded by the tax payer that money's coming from companies themselves if those companies have got paid more money to get contracts on board because there's less of them about because a lot of them have been either permanent employees going abroad, going to companies that pine him silly money.

It makes it really difficult to compete if you don't have that skill set so jobs can't be done, you become uncompetitive.

Is a company, in my opinion, that's the way the government just getting more money from people already doing the job.

It's just squeezing more money out pop from employees.

It's just another tax way of doing it.

Give it a few more years, there's gonna be another tax for someone else.

They'll use some nonsense.

Why justifying it is ridiculous how many things they won't attack you on.

You might be watching.

This is a contract hours a recruit.

Time might be involved.

The industry, looking at it thinking, has good impact things.

So I thought, best basic.

DVC my predictions and how does it work on the prediction like most things were, the government.

Regardless, whether you or I like or not, he's gonna happen.

There's a ton of legal cases going in.

People trying to argue.

This company's reviewing that contractor cases trying to get around it, his clients and mind trying to call us up.

How do we get around this?

What do we do?

You know what?

There's no way around it.

The government will have their way.

They'll always get their way.

You haven't got a choice.

You, me, anyone.

So the system has to have that on.

The reality in the system is if you're a really good contractor and you could get more money, guess what you probably got abroad or you leave a suck it and see, and then goes a permanent employee somewhere and think, Well, at least I get the security.

You really want to earn the money we chase the money, just got broad.

Guess what?

We recruited the Middle East now.

Plenty of stuff out there.

Give us a call if you want.

That's what we do.

But we could do the UK.

We could do abroad and it would just change the system.

That's how it's gonna work.

Even you're going to go one or two routes giving it will be a contractor, and I want to earn the money.

Is a contractor abroad or you'll go.

You know, I don't want the hassle gone abroad.

I'm gonna have to suck it up and see him pay more tax and adjust my lifestyle accordingly and become a permanent employee somewhere trying to someone else.

So people would that the system won't it that the government, the HMRC Inland revenue, they will have their way, and you and I can't do a thing about it.

And that unfortunate bout how much you pass a moan about it.

There's just no way.

It is what it is.

I want to hear your force and I are fine.

Maybe you have missed out on something.

Maybe you think it's a good argument against it.

Maybe fitness.

A solution to our 35.

You might even disagree with my predictions.

My forts on it you might love.

I are 35.

You're being a minority, but then someone loves our course in your attacks, man.

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