The Budget then

[gwildfire]

As I unerstand it ,' the laws relating to income shifting' are not in place yet
Why should we therefore abide by it ?

4.69 The Government firmly believes it is unfair that some individuals can arrange their
affairs to gain a tax advantage by shifting part of their income to another person who is subject
to a lower rate of tax. The Government considered the responses received to the recent
consultation and believes that a further period of consultation will ensure that the legislation
in this area provides clarity and certainty for businesses and their advisers. The Government
now intends to introduce legislation through Finance Bill 2009 and will not enact legislation
effective from 6 April 2008.”

Don't forget the S660 rules still apply - for what they are worth.

[EqualOpportunities]

Maybe he was cold.


/IGMC

[moorfield]

It's a great time to take as much in divi as possible for your spouse. I haven't anything left to distribute, but for those who have, do it the next 12 months! Not often that you get a 2nd chance.

[dude69]

From the budget:



Likely to impact contract rates in the City?

VAT is reclaimable by all City clients. Irrelevant.

[malvolio]

VAT is reclaimable by all City clients. Irrelevant.

Well yes. Apart from banks, insurance companies and HMG of course...

[dude69]

Well yes. Apart from banks, insurance companies and HMG of course...

Why can't banks reclaim VAT? They are certainly all VAT registered.

[minstrel]

Why can't banks reclaim VAT? They are certainly all VAT registered.

Think there are special rules for banks since they charge very little VAT on their sales.

The whole VAT chain works on the principle that the last person in the chain pays the VAT. As banks don't pay the VAT on their output sales that they are recovering on their input costs they would effectively be robbing the treasury of all the VAT.

[Sockpuppet]

Well yes. Apart from banks, insurance companies and HMG of course...

You could argue that HMG get the money in the end anyway. So they sort of reclaim it.