Whats your views on Budget 2015?

[WordIsBond]

Is it likely to be more efficient to take a chunk out this year, making use of the 10% credit while it's still there on the 32.5% band (meaning it's actually 25%)?

Too soon to say, but I'll make a prediction anyway:

January 2017 is going to be a very good month for George Osborne for tax revenues, as everyone who took really large dividends in late March / early April of 2016 files and pays their self-assessment.

[WordIsBond]

Employment allowance increasing to £3K. Good for me, but useless for one-man companies. Increases the incentive for two contractors to band together, I guess.

[expat]

Too soon to say, but I'll make a prediction anyway:

January 2017 is going to be a very good month for George Osborne for tax revenues, as everyone who took really large dividends in late March / early April of 2016 files and pays their self-assessment.

Oh. Is Cameron retiring in 2017?

[Jack Kada]

Oh. Is Cameron retiring in 2017?

Contrafcting is finished - You have nine months to make hay and then quit

The changes in the dividend income rules are so big that it makes no sense to continue having an incorporation

[ChimpMaster]

Contrafcting is finished - You have nine months to make hay and then quit

The changes in the dividend income rules are so big that it makes no sense to continue having an incorporation

It's heading that way but not quite so bad yet.

Keep under the 40% threshold and it's not so bad - yes you'll pay a grand or so more tax but not quite the death bell ringing... yet

[Wijay@WISAccountancy]

Contrafcting is finished - You have nine months to make hay and then quit

The changes in the dividend income rules are so big that it makes no sense to continue having an incorporation

I think thats too big of a statement. Remember you still do not pay NI on Divs, plus not forced into contributing into pensions, plus sharing the tax burden with spouse - all this is still possible with contracting! Chancellor is not definitely friendly towards the freelancers/contractors...

[jffinancial]

thanks

Well thanks Georgie boy - you certainly keep us accountants on our toes.

Need to see the fallout and get our heads around the detail of this as it will have a big impact on salary & dividend tax planning for limited co contractors and freelancers next year.

Time for another coffee...

[psychocandy]

You sure did!

Will be interesting to see exactly when it applies from, will it be backdated to the start of this tax year or just apply from 2016/17 onwards.

Martin
Contratax Ltd

One director? I assume two directors one employee makes no difference its the number of employees that counts?

Like someone said, whats to stop you employing your mrs as an admin assistant on a zero hours contract? Two employees.

I know at the moment employing the mrs on £10K a year to 'do the books' is considered a bit of a pisstake and likely to flag up. I understand the rule is you can't pay a wage to a family member that you wouldnt pay to someone else.

1 hour a month submitting my invoices etc. Zero hours contract. 1 hours pay per month. Two employees.....

[psychocandy]

Next renewal tell agent/client you want at least 7.5% more - blame George....

[northernladuk]

One director? I assume two directors one employee makes no difference its the number of employees that counts?

I'd say pretty safe assumption.

Like someone said, whats to stop you employing your mrs as an admin assistant on a zero hours contract? Two employees.

I know at the moment employing the mrs on £10K a year to 'do the books' is considered a bit of a pisstake and likely to flag up. I understand the rule is you can't pay a wage to a family member that you wouldnt pay to someone else.

1 hour a month submitting my invoices etc. Zero hours contract. 1 hours pay per month. Two employees.....

You would think they are not stupid and already have this piss take on their radar so could kill two birds with one stone if they word it right.

Question though. Does your wife have a contract of employment?