Earlier quoted context omitted.
It's not BS. It is packaged as changes to IR35 and sold as "making sure that workers who work as employees pay the same tax as employees." More info: https://norightsemployee.uk/faq Some MPs woke up quite too late: https://www.computerweekly.com/news/252499096/Loan-Charge-Gr... The articles refer to those workers as contractors and mainly focus on IT market, but these rules can be applied to any workers.
Thank you for clarifying. But how would IR35 apply in this case - she was an employee anyway, not a contractor and did not have her own limited company.
It is possible to work inside IR35 without having own company, but I have not seen many materials about that, so I'll leave it.
Company formation is very quick and can be automated and there are already companies who automate accounting related to this.
The structure would have to look like this: - deemed employee gets a job offer, he or she accepts
- company creates limited company on worker's behalf and creates an agreement with a fee payer - it must contain clauses limiting substitution and few other to ensure it falls in scope of IR35.
- Fee payer is an intermediary between employer and worker that pays tax on behalf of the worker and sends his or hers salary to their company account. (these companies already exist)
- all accounting for worker's company can be automated (there will be no Corporation Tax to pay etc.)
This may seem complex, but I can imagine it gets streamlined quickly when companies see the benefits.