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Autumn Statement 2016

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    Originally posted by Rabotnik View Post
    Yeah I've been paying for the "advanced/gold"(?) membership all this time so I could get stuff like Jury Service insurance but now I don't think it's worth it.
    At least via CU your insurance is included (£20m package) within our margin so you wouldn't have to worry about that! If you do end up down that route, just shout!

    Comment


      Autumn Statement 2016

      Getting back on track. As far as I can see, from 17/18 onwards, the tax benefits of a limited company operation compared with a paye operation are practically nil. So this begs the question ... why pursue with ir35 legislation now? I can't see how it will raise them any more tax ? Albeit a different flavour of tax.
      Last edited by seeourbee; 24 November 2016, 10:46.

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        Originally posted by jamesbrown View Post
        Agreed, it's unlikely to apply to the typical contractor. The word "scheme" has a very specific meaning in terms of avoidance, as distinct from tax planning. Also, the context of this measure in the AS is a further giveaway, as it talks about extending earlier legislation on "disguised remuneration schemes" to the "self employed".

        In terms of the earlier legislation, see Chapter 7 here, which is what I think they're referring to in the AS:

        https://www.gov.uk/government/public...technical-note
        This, great post! The government are going after the schemes that avoid tax. The average contractor is running a tax efficient scheme through payments and dividends.

        There is a difference between Tax Avoidance and being Tax Efficient. Our methods of pay are Tax efficient through a scheme. The government killing the contracting market stone dead is not in its best interests due to the tax it does generate.

        Banks and the oil Industry are big users of the Contracting industry. They will have a big say on how this works out as well. We all remember Osborne had a plan to kill a £26billion industry in the UK stone dead last April before the oil industry made threats.

        Comment


          Originally posted by seeourbee View Post
          Getting back on track. As far as I can see, from 17/18 onwards, the tax benefits of a limited company operation compared with a paye operation are practically nil. So this begs the question ... why pursue with ir35 legislation now? I can't see how it will raise them any more tax ? Albeit a different flavour of tax.
          For somebody who isn't IR35 caught or doesn't do public sector work there are still a number of advantages to operating as a Ltd co, particularly the tax planning advantage of not having to draw dividends above the higher rate threshold unless you need to.

          If you were on PAYE or self employed you'd be taxed at the higher rate on any earnings above the threshold immediately and would have to build a war chest up out of post-tax money.

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            Yes, agreed, but apart from the draw down control I can't see any advantage ? If everyone acted like a union then we could push market prices higher. That would be our kickback.

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              Originally posted by seeourbee View Post
              Yes, agreed, but apart from the draw down control I can't see any advantage ? If everyone acted like a union then we could push market prices higher. That would be our kickback.
              You think?
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                If everyone did, yes. Just supply and demand.

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                  Originally posted by seeourbee View Post
                  If everyone did, yes. Just supply and demand.
                  And there is your problem, not all want to work for the common good when they can achieve personal betterment
                  Growing old is mandatory
                  Growing up is optional

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                    Well exactly. That's what I meant by all people doing it. Works for unions.

                    I know I will be asking a higher rate, my skills are quite specialist so there won't be so much competition.

                    Comment


                      If we all stand together we can make a difference!

                      The problem here is this is a "Jet pack" idea, it sounds great in principle however its never going to take off.

                      Lets look at the holes in your suggestion.

                      A few contractors demand higher rates which in turn leads to other contractors who accept that they earn more than double, treble what the average man earns accept the current rate. The demanding contractor will quickly accept the current rate I bet.

                      OK, so what happens if we all ask for the pay rise to cover the costs, then it is simple, the client will then look towards other measures to cut the cost by offshoring.

                      Lastly, what happens when it simply becomes that contractors demand such a premium that is no longer viable to hire them. The client will simply create in-house style contractors which will be a more cost effective solution or move towards FTC's.

                      You can only demand so much before you break the system!

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