Contracting thrives 'despite legal onslaught'

Posted on 3 September 2008

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An expert in the sector has stated that contracting is continuing to thrive despite years of legal attacks.

Until 1988 a contractor who was self-employed was not counted as an employee of the agency and enjoyed a number of tax advantages as a result.

However, Barry Roback, chief executive of JSA stated that avoiding tax was clearly not the primary motivation for most who are self-employed, reports Shout99.com.

He said that the flourishing industry was evidence of this because if it were not the case, the constant legislation being imposed by the Treasury would have led to a "terminal decline" in the sector.

Mr Roback commented: "The fact that [contracting] is booming is proof that minimisation of tax liabilities is not, in general, particularly high on the list of most contractors’ priorities.

The legislation passed in 1988 meant that agencies were no longer allowed to pay contractors without taking tax and National Insurance from it.

Category: Tax & Legislation News

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