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Comment 10th July 2010

The IR35 tax rules have meant that companies that used to be able to pick up the phone and hire contactors from the UK cannot now to so with ease.

They have been force to use IT outsourcers which wish to charge a lot for the privilege. So many businesses have responded by using Indian outsourcers. The Indians at first provided a help desk for phone support.

The India outsourcing companies are now providing people in the UK on short term working contracts. They work 6 month here then 6 month back in India. My questions to this form are.

Why train so many people in to IT and then give the work to others?

Why make the tax system so the UK people can’t compete?

Some tax must be better than on tax surly?

Why does this matter?

Companies hire the cheapest staff. The tax system should not be used to penalize UK tax payers.

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