Ready for 24% Corp tax?

[eek]

If they had just done this in the first place, instead of messing about with the contractor working model with IR35 reforms, I personally would have been happy to get on board with this.

The IR35 reforms are about discouraging companies from fully outsource employees - it isn't going anywhere.

[founder]

They are more than welcome to the 24% of nothing I am currently receiving.

Very generous of you

[jayn200]

Nope, not ready. Totally sucks.

[Peoplesoft bloke]

The IR35 reforms are about discouraging companies from fully outsource[sic] employees in the UK - it isn't going anywhere.

FTFY

[BlueSharp]

Div tax and capital gains tax to equal income tax and NI + raising corp tax. At that point IR35 becomes irrelevant as it's more tax efficient to be inside.

[Old Greg]

Div tax and capital gains tax to equal income tax and NI + raising corp tax. At that point IR35 becomes irrelevant as it's more tax efficient to be inside.

I'll say it again. Tax divis at full income tax rate but treat proprietary directors as sole traders as far as NIC is concerned.

[ladymuck]

There's no likelihood of 24% CT in the near term. Maybe in five or more years' time it could creep towards it.

As mentioned in the thread on this topic in general, the government are 'leaking' ideas and seeing which ones get the least noise so they know to safely implement those.

[PCTNN]

The IR35 reforms are about discouraging companies from fully outsource employees - it isn't going anywhere.

This is what I found most contractors struggle to understand: the IR35 reform is not about hitting contractors; it's about hitting those companies who use contractors the way they're not supposed to.

That there are effects on contractors is inevitable, but contractors should stop thinking IR35 is purely designed and aimed at damaging them.

[ladymuck]

This is what I found most contractors struggle to understand: the IR35 reform is not about hitting contractors; it's about hitting those companies who use contractors the way they're not supposed to.

That there are effects on contractors is inevitable, but contractors should stop thinking IR35 is purely designed and aimed at damaging them.

It's "hitting" companies because for many years companies have been dodging NI liabilities (and workers rights) by using contractors when they should have been taking on permanent staff. The 13-odd% NI is a huge tax on employment and if you don't have to pay it, why would you?

Root and branch reform is what's needed but we will only ever get tinkering around the edges because a clear and easily understandable tax system is not in the interests of TPTB

[mattster]

I'll say it again. Tax divis at full income tax rate but treat proprietary directors as sole traders as far as NIC is concerned.

Sunak has already strongly hinted that he is coming for self-employed NICs.