77k rule

[russell]

So lets say the new rule is in place that companies with turnover less than 77k will be taxed on turnover.

If I turnover 75k I will be taxed 20% i.e. 15k even if I had expenses of 30k whereas if I turnover 78k with 30k expenses I will only pay 9.6k??

[Clare@InTouch]

I imagine it would be optional, kind of like the VAT flat rate scheme.

[LisaContractorUmbrella]

They are saying there will be an opt-out but it must be for a fixed period of say 5 years. However, I believe this only applies to micro companies that are unincorporated

[eek]

Russell,

Many years ago I discovered that its not the headline details that matter in the budget its the detail. And that takes a few days to appear. The differences between IR35 in reaility and the initial announcement is just 1 example.

Wait until the weekend and discuss this after all the gory detail appears in Saturday's and Sunday's papers.

[russell]

Russell,

Many years ago I discovered that its not the headline details that matter in the budget its the detail. And that takes a few days to appear. The differences between IR35 in reaility and the initial announcement is just 1 example.

Wait until the weekend and discuss this after all the gory detail appears in Saturday's and Sunday's papers.

Why do you have a link in your signature? I see you are all over the board also? Funny that nothing but a spammer.

[eek]

Why do you have a link in your signature? I see you are all over the board also? Funny that nothing but a spammer.

Why not? If you ask AtW he will probably tell you it does more harm then good.

As for the other bit I think someone has just discovered that while the tax threshold is rising next year to £9105 the 40% point is dropping £2000 so you end up £105 worse off.

[Jog On]

Why not? If you ask AtW he will probably tell you it does more harm then good.

As for the other bit I think someone has just discovered that while the tax threshold is rising next year to £9105 the 40% point is dropping £2000 so you end up £105 worse off.

How does this work with salary & divis?

If you take £9k salary + £33k divis does anything change? Or is it just for anyone on >£40k salary?

[pacharan]

How does this work with salary & divis?

If you take £9k salary + £33k divis does anything change? Or is it just for anyone on >£40k salary?

It'll work exactly the same. The upper limit kicks in when you hit that level regardless of whether your income is from salary, divis or a combination of the two.

[yasockie]

links please, that could be handy for the lazy lowlifes like me...

[BigTime]

Just spotted that it will be expanded:

"..the Treasury will then consider expanding the change to firms with sales of up to £150,000 per year, which it estimates would mean more than three million firms being able to benefit."

BBC News - Budget 2012: Impact on small firms