Super dumb question re. employment status/IR35

[ladymuck]

The individual pays the same taxes regardless of whether they are employer or employee, but the client pays more NICs for employees. So there is a difference, from HMRC's perspective, regarding sole trader vs employee, so it is in their interests to 'upgrade' sole traders to employees. However in reality it seems that clients already know this so don't hire sole traders.

Yes, agreed, that's why we all had to go the LtdCo route...

It was more about why IR35 does / doesn't apply to the self employed.

[ladymuck]

yes, now it is. But in effect it's the same as IR35. The contractor has to prove that they are independent.

Now as in, effective from 1999.... It's as new as IR35

[JohntheBike]

Now as in, effective from 1999.... It's as new as IR35

the CIS scheme was introduced in its earliest form in 1972.