IR35 Chancellor Rishi Sunak
The IR35 Chancellor Rishi Sunak has blamed contractors, at least partly, for the shortages in the NHS. This is from a Government who have made the biggest cuts in history to the NHS. They have slashed the number of nurses by over 20,000. The numbers of doctors have decreased dramatically too. It isn’t contractors who did this.
Contractor Questions on IR35 Chancellor Rishi Sunak
- What did IR35 Chancellor Rishi Sunak say about contractors and tax?
- Why did Rishi Sunak blame NHS shortages on contractors?
- Why were immigrants never to blame for NHS shortages?
- What really caused the NHS shortages?
- Why is it hypocrisy for Chancellor Rishi Sunak to blame contractors?
- Who should IR35 Chancellor Rishi Sunak blame for NHS shortages?
What did IR35 Chancellor Rishi Sunak say about contractors and tax
According to IR35 Chancellor Rishi Sunak the IR35 changes mean there is “going to mean some changes because some people unfortunately were operating in a way that they weren’t paying the tax they probably should have been, because essentially they were employees but they were being taxed as if they were self-employed. And there is quite a difference there”.
If he is interested in fairness, there are now going to be tens of thousands of contractors who will have to pay PAYE tax that they should not be doing. Many contractors who would be outside IR35 using the Government and HMRC’s own test are now being forced to pay PAYE tax. And that is the IR35 Chancellor Rishi Sunak’s doing.
He is allowing companies to blanket ban contractors using personal services companies.
Why did Rishi Sunak blame NHS shortages on contractors
The IR35 Chancellor Rishi Sunak continues “And it’s not fair to all the people who are employed that someone else could be doing the same job and paying less tax. Because ultimately that tax pays for the NHS and social care and everything else.”
That really takes the biscuit in hypocrisy. It makes a change from blaming immigrants, I suppose. With the last two Chancellors coming from immigrant families they had to find a new scapegoat.
Why were immigrants never to blame for NHS shortages
It was never the fault of immigrants anyway. They were blamed for all sorts of things that were really the Government’s fault.
For instance I remember seeing a couple of years ago that while unemployment was generally 4.5%, unemployment among immigrants was under 2%. So, they are not dole scroungers as often depicted.
Immigrants are mainly young and male. Most of them, if they don’t have any work here, will go back home. That’;s what happened in 2008 after the credit crunch. So they are actually subsidising us when they pay tax and NI.
Indeed, because they are young and healthy they don’t use the NHS much anyway.
Also, as some of them go back home they are subsidising our pensions too. A few years ago the Indian Government demanded that the UK Government gave Indians leaving the country their pension contributions back as they would never use them. The British Government refused.
So, it was never immigrants that caused shortages to, or clogged up, the NHS.
Why really caused the NHS shortages
And it is not contractors either.
It was once calculated by Christine Lagarde’s department at the EU that you have to make £3 in cuts to take £1 off the country’s debts.
That’s because those laid off, like the 20,000 odd nurses would now spend less and would get unemployment benefits.
I remember Gorge Osborne’s last budget when he said that the Conservative Government had reduced the public sector part of the state from 46% of GDP to 36% of GDP.
That’s when it clicked with me. It was nothing at all to do with needing Austerity. That was just the excuse. It was all about cutting back on the state part of he economy. That’s why all the Conservative MPs stood up and applauded.
However,sufferers from this Austerity were thousands and thousands of nurses who were taken out of the NHS and thousands of doctors.
They would have been better adding new nurses to the NHS Just as you have to spend £3 to get £1 off h debt, the economy is going to get £3 of benefit for every £1 injected into it.
Why is it hypocrisy for Chancellor Rishi Sunak to blame contractors
So, it really beggars belief that IR35 Chancellor Rishi Sunak blames contractors for the shortages of nurses and doctors in the NHS.
Even if all those contractors had paid PAYE the Government would not have increased the numbers of nurses and doctors. They would just have used that money to pay back some more debt. They had no intention of adding more to the state part of the economy having taken it down from 46% to 36%.
It’s good to see Boris Johnson and Dominic Cummings reversing the previous Austerity measures with some good old fashioned Keynsian economics.
Who should IR35 Chancellor Rishi Sunak blame for NHS shortages
However, why don’t they and Rishi Sunak blame the real culprits for the shortages in the NHS. They are the two previous Prime Ministers David Cameron and Theresa May, and the previous Chancellors George Osborne and Philip Hammond.
And, while they are at it, they might want to right the unfairness of many contractors who would pass the CEST IR35 test having to pay PAYE when they are really in business on their own account.
It is quite outrageous that IR35 Chancellor Rishi Sunak says it is unfair that some contractors who should be paying IR35 aren’t when he thinks it is fine that thousands of contractors who should not be paying PAYE will have to do so.
Where’s IR35 Chancellor Rishi Sunak’ s sense of fair play now?
And he should stop blaming contractors for NHS shortages when his party were the culprits.
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