Will contract rates increase to pass dividend tax increase to clients?

[flamel]

..... Guess that means I'm not a real contractor....

Nope, I guess not.
Are you touting for business as an umbrella provider?

[seanraaron]

Nope, I guess not.
Are you touting for business as an umbrella provider?

No, I'm just starting out and can't be bothered with the Ltd baggage or avoiding/thinking about IR35.

If I was actually in business for myself I don't think I'd be running an umbrella company.

[northernladuk]

No, I'm just starting out and can't be bothered with the Ltd baggage or avoiding/thinking about IR35.
.

If you can't cut it then stop posting in the prof forums then.

[seanraaron]

If you can't cut it then stop posting in the prof forums then.

I think I'm allowed to have opinions about things regardless of what you think.

[NotAllThere]

I cannot see why people who have a one or two person ltd (gotta remember the wife!) are allowed to pay themselves dividends or anything else really. The idea a contractor has a "company" with "shares" is laughable.

If you're not running a bona fide consultancy with an office outside your home and part- or full-time staff that do more than get you more tax-free money you're just taking the piss.

I can only imagine the government doesn't crack down on it because too many of them are doing it themselves...

This is a contractor forum. Many people here work through a limited contract. Since you are a newbie to the contracting world you are clearly not aware of the history that has led to this. Therefore consider this a friendly moderator warning to shut up.

I think I'm allowed to have opinions about things regardless of what you think.

You are allowed your opinions. But if your opinions are inflammatory and diametrically opposed to the majority on this board, then that is trolling. You should consider this further to be a friendly moderator warning to shut up.

[bobspud]

I have to say if I had to get an ltd and an accountant and generate invoices there's no way I'd contract (assuming I had a choice). Guess that means I'm not a real contractor, even if I end up doing this for the next twenty years...

There is a different way to look at this. You won't always be as lucky as you are so far (I'm guessing). The reason for owning a LTD company is to allow you to store money for a rainy day in addition to the cash you need to enjoy yourself today. Sitting there talking about how great an umbrella company is while most of them use shady tricks like telling their mug clients that its fine to claim expenses without receipts because they have an agreement with HMRC, is a bit short sighted.

Its true that many contractors in hand to mouth support jobs are stretching the bounds of what a LTD company is for however its the only structure most of us have right now so don't knock it.

For the record if some other sole trader single entity thing like the IPSE proposal arrived on the books, I still wouldn't use it as I want to have my Tax and governance affairs handled as close to big business as is possible. Being limited in the way we are made it much harder to go after dividend payments than had we been a sitting duck in our own neat entity.

All you are doing is giving free money to a government that can't spend it fast enough.

[LondonManc]

There is a different way to look at this. You won't always be as lucky as you are so far (I'm guessing). The reason for owning a LTD company is to allow you to store money for a rainy day in addition to the cash you need to enjoy yourself today. Sitting there talking about how great an umbrella company is while most of them use shady tricks like telling their mug clients that its fine to claim expenses without receipts because they have an agreement with HMRC, is a bit short sighted.

Its true that many contractors in hand to mouth support jobs are stretching the bounds of what a LTD company is for however its the only structure most of us have right now so don't knock it.

For the record if some other sole trader single entity thing like the IPSE proposal arrived on the books, I still wouldn't use it as I want to have my Tax and governance affairs handled as close to big business as is possible. Being limited in the way we are made it much harder to go after dividend payments than had we been a sitting duck in our own neat entity.

All you are doing is giving free money to a government that can't spend it fast enough.

I like the flexibility to grow quickly if required and take on other associates for pass-through billing (right of substitution, additional bandwidth request, etc.)

[Boo]

The divi increase is the government telling us that we must pay more personal tax. That's not the client's problem....

With respect, anything that adversly affects a suppliers' bottom line is the customer's problem.

Boo

[jamesbrown]

With respect, anything that adversly affects a suppliers' bottom line is the customer's problem.

Boo

It's only the customer's problem if you can make it their problem, which begs the question why you wouldn't be charging the maximum possible rate already. In practice, if you're working in a sector that is already under pressure, there may be limited scope to increase prices. If there is that scope, do it now, don't wait for an excuse (it isn't as though you can cite personal taxation as a reason for increasing prices and also maintain credibility).

[quackhandle]

To the OP: Been on the bench for a few months now and I've seen the same range of rates there's always been (around the UK and Europe)

< 150 day for the pimps trying it on. Plenty Cheapness!

Mid range 250-350 a day plenty of these. Saw a few for Central London which is talking the pi$$ a bit.

There's a few willing to break the 400+ barrier and then you see the ones with IB's, cyber security/Specialist roles/Prog Managers for 500+.

This will still be exactly the same after April 6th 2016. It's not a case of putting your rate up, it's a case of what rate you are comfortable invoicing for.

qh