You've just agreed with him that it's a top destination for tech talent. The fact is, unlike the average London tech startup, the personal service companies actually have clients. And they do business and make profit.
I pay much more tax than I ever did as an employee. Even though I am certainly more tax efficient. The government certainly makes more money from me than if I was LARPing as a startup business yet had zero customers.
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You might think that "none of that matters" one bit but I think you misunderstand. Somewhere with a thriving contracting/freelancing industry is defacto a "top destination for tech talent". And they collect tax revenue from almost all of these businesses.
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In fact it is harder for small businesses to avoid tax despite what you say since we are unable to pay for high-end offshore corporate accountancy. And much more at risk if we were to do something dodgy and then later on get fined.
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