British firms hire contractors instead of employees to cut tax bills


Advertised contract jobs have risen 22% since April. — Bloomberg

LONDON: UK businesses are turning to the self-employed in an effort to rein in costs as they try to navigate Chancellor of the Exchequer Rachel Reeves’ £26bil (US$34.5bil) payroll tax hike. 

Advertised contract jobs have risen 22% since April, when the tax rise came into effect alongside a near 7% increase in the minimum wage, according to Adzuna figures shared with Bloomberg. In contrast, vacancies for permanent jobs have declined 9%.

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