Any views on potential increases to Corp Tax?

[Paralytic]

Why do you guys think there will be a raise in taxes?

Why do you think the financial press is now littered with rumours of various potential tax rises?

That falls against all modern economic theory on the matter. Cut taxes, borrow and spend your way to economic growth. You don't tax your way to it. Balance the books when times are good not when they are bad.

Why do you think this government would manage the economy according to modern economic theory?

[DrStrange]

Why would a rise in CT end contracting?

Sorry, you're right.

I'm just feeling bruised and battered right now and the thought of CT and DT increases, coupled with everything that I'm battling right now makes me feel like giving up and going back perm, but yeah, my niche isn't exactly representative of contracting so that was a stupid comment

[jamesbrown]

They aren't going to raise CT by 5% in one budget, especially not on March 3 when we're emerging from lockdown, at best, and the second dip of the many-dipped recession is underway.

If they're really stupid, I suppose they could raise it by 1%, hinting at a direction of travel, but even that seems more likely to be deferred until the Autumn Budget in time for 22/23 (or Autumn Statement or whatever they are calling each of the biannual statements this year ).

If and when they do raise it, and they might, then it's also not impossible that they might reintroduce the small profits rate too, because there tends to be more whining when taxes are raised on small businesses. Otoh, if they introduce a stupid director's income support scheme or similar in the March Budget, then that will give them the cover the screw everyone later.

But taxes are obviously going up in the coming years (duh) - it's just a question of when, not if, and there are few taxes left that raise significant money and aren't already ringfenced to not rise.

[northernladuk]

Why do you guys think there will be a raise in taxes? That falls against all modern economic theory on the matter. Cut taxes, borrow and spend your way to economic growth. You don't tax your way to it. Balance the books when times are good not when they are bad.

I don't think any of that theory included a global pandemic TBF.

[ladymuck]

Sorry, you're right.

I'm just feeling bruised and battered right now and the thought of CT and DT increases, coupled with everything that I'm battling right now makes me feel like giving up and going back perm, but yeah, my niche isn't exactly representative of contracting so that was a stupid comment

No need to apologise The bruised and battered feeling is pretty rife across the industry

A rise in CT could well be another nail in the coffin for some but probably only for those already struggling.

[jamesbrown]

[Fred Bloggs]

Expect a CT hike in 2022 and 23. A rise in 2021 would snuff out any chance of an economic rebound from Covid before it even starts.

[jamesbrown]

Expect a CT hike in 2022 and 23. A rise in 2021 would snuff out any chance of an economic rebound from Covid before it even starts.

Indeed, if they're not complete morons*.


































*

[eek]

I expect this years budget to feature a lot of consultations ready for announcement in 2022 for implementation in 2023.

It really wouldn't surprise me that we will see a land / house value tax replacing stamp duty and council tax.

[Paralytic]

It really wouldn't surprise me that we will see a land / house value tax replacing stamp duty and council tax.

This would really surprise me - it would have too much detrimental impact to too many Tory donors. It would also drastically impact the people who have benefited from the house price risks in the south east but who's income and other assets have not matched that rise. They could literally have to sell their house/downsize to afford such a tax.