Budget Update

[SackmanandCo]

what do people think the outcome of the IR35 review will be?

[Sausage Surprise]

Flat rate for IT contractors up to 14.5% from 13%. So someone billing £100K + VAT will pay make an additional profit per annum of £375, before taking account of any additional input VAT they might pay.

PUMA

Jurassic Park....

[Fred Bloggs]

what do people think the outcome of the IR35 review will be?

Much higher tax for all contractors. 100% certain.

[maxima]

CGT reduction probably gives me an extra £700

can anyone explain how increasing of CGT gives anyone extra?

Most of IT contractors use schema: min salary + max dividends. may be I am missing something but CGT is taken from dividends so we are going to lose 10% more or what? CGT was 18%...

[lje]

can anyone explain how increasing of CGT gives anyone extra?

Most of IT contractors use schema: min salary + max dividends. may be I am missing something but CGT is taken from dividends so we are going to lose 10% more or what? CGT was 18%...

I believe that they meant the reduction in corporation tax.

CGT is not taken from dividends. CGT is only payable when you sell an asset. It normally is not important for contractors although you may use the enterpreneur's allowance when shutting the company.

[maxima]

Yeah.. I just realised myself that it was rubbish what I said

[SackmanandCo]

I dont think the review of IR35 will mean lower taxes. Speculation continues that NIC could be charged on dividemds!!