Avoiding employers' National Insurance contributions (CalMac)

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Ferry operator Caledonian MacBrayne has been given the go-ahead to cut costs by exploiting a tax loophole.

The firm is considering transferring crews to an offshore company, saving more than £1m a year in National Insurance payments.

CalMac said it would help to defend its Clyde and Hebrides ferry routes. .. While it was thought that Treasury regulations ruled out the tactic for public bodies, CalMac has now been given the all-clear.

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Lemme see, the tubs sail in UK waters between British ports. But el Treasury doesn't mind a bit of financial dodgery to reduce costs? How does this square with such measures as IR35? And can Tesco's be far behind, offshoring its local superstore's staff?

Reply to
Colum Mylod
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I hadn't realised until now that "Caledonian MacBrayne is a limited liability company wholly owned by Scottish Ministers as successors to the Secretary of State for Scotland."

Bit like the Revenue offshoring its property portfolio and renting it back

Phil

Reply to
Phil Thompson

How would this affect the state pension of the employees? If they are not paying "stamp" then isn't it going to reduce pensions? Or is it just the company NI being saved?

Reply to
Mike Hibbert

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