Did I miss something on Entrepreneurs Relief?

[ChimpMaster]

Government to drum up £1.5bn by clamping down on tax breaks for entrepreneurs | Startups.co.uk

Is there another change to ER in the pipeline?

[TheCyclingProgrammer]

You haven't missed anything, the article is just speculation by one person.

That said, I do expect the dividend allowance cut to £2k to return in the next budget and further restrictions on claiming ER over the next few years (if it doesn't get abolished entirely).

[TheFaQQer]

You haven't missed anything, the article is just speculation by one person.

That said, I do expect the dividend allowance cut to £2k to return in the next budget and further restrictions on claiming ER over the next few years (if it doesn't get abolished entirely).

I agree - I was surprised that there weren't changes to ER in the last Autumn Statement or budget. It's coming, though.

[AtW]

[WordIsBond]

That article is not about another change, it is speculation as to the impact of the recent changes. Since the recent changes restrict people who probably shouldn't have been claiming ER anyway, if the projection is right then the changes were probably good ones to make. That would say the government was losing £1.5 billion a year simply because of dubious ER claims. It's not supposed to be for one man bands who close down a company and start another one before long.

[TheFaQQer]

That article is not about another change, it is speculation as to the impact of the recent changes. Since the recent changes restrict people who probably shouldn't have been claiming ER anyway, if the projection is right then the changes were probably good ones to make. That would say the government was losing £1.5 billion a year simply because of dubious ER claims. It's not supposed to be for one man bands who close down a company and start another one before long.

A year or so ago, I had a conversation with the guy who created the idea of ER when the government were going to scrap Taper Relief, who had some interesting comments on what had finally been implemented compared to the original recommendations that he put forward.

Needless to say, the implementation did not match the concept

[ChimpMaster]

I have a specific interest in ER because I am nearing the end of my contracting life. Not that I'm anywhere near retirement age, but I am working my last (and long-term) contract into the ground and will be liquidating next year, with an aim to claim ER.

I can see the whole process becoming much more of a ball-ache now. I don't mind the new rules of not working in IT "business" for 2 years (or even as a permie), but I would hate my ER application to come under intense scrutiny just because HMRC aren't keen on allowing ER any more.

[Hobosapien]

Close down and claim ER while you still can, and use a brolly until quitting the game if that horizon is near enough.

Personally I've taken max divis when possible over the years so there's not a huge stash in my Ltd anyway, though that was only possible because I'm cheap and didn't build up a massive amount.

What's left in my Ltd will be run down via normal PAYE/annual divi over coming years if I don't go back to using it for contracting or plan B, sort of like a draw down pension but with accountancy overhead instead of pension company.

[Maslins]

I have a specific interest in ER because I am nearing the end of my contracting life. Not that I'm anywhere near retirement age, but I am working my last (and long-term) contract into the ground and will be liquidating next year, with an aim to claim ER.

I can see the whole process becoming much more of a ball-ache now. I don't mind the new rules of not working in IT "business" for 2 years (or even as a permie), but I would hate my ER application to come under intense scrutiny just because HMRC aren't keen on allowing ER any more.

I think with rules as they are you're pretty safe. Ever since the day MVLO was set up we knew it would realistically be a temporary thing. An option created by a change in tax law, which would no doubt later be killed by another change in tax law. As to exactly when that date will be, and whether it'll be before/after your planned liquidation, your guess is as good as mine!

[ChimpMaster]

I think with rules as they are you're pretty safe. Ever since the day MVLO was set up we knew it would realistically be a temporary thing. An option created by a change in tax law, which would no doubt later be killed by another change in tax law. As to exactly when that date will be, and whether it'll be before/after your planned liquidation, your guess is as good as mine!

Yes as things stand it looks OK but the additional scrutiny on ER applications is unwelcomed and I have concerns what might be announced in the next couple of budgets.

Hard to say when I will be quitting IT/contracting. It could be later this year or towards end of 2018. Just hope the government doesn't blow out my life-plans completely!