Budget 2015 thread

[VectraMan]

It'll bother anyone who works away from home in a market competing with those who are local.

To compensate for not being able to claim expenses for working in London, you have to whack up your rate significantly because the employee has to pay that additional £10k (or whatever it costs you) out of their salary, which means you have to take that much more out of the company, incurring a 40% tax hit on it.

So you now need to add a minimum of £80 a day onto your day rate, which prices you out of the market.

On the other hand, you could keep your rate the same and pay your fair share of tax like everybody else. And still take home considerably more.

[Tasslehoff]

on the other hand, you could keep your rate the same and pay your fair share of tax like everybody else. And still take home considerably more.

shots fired!

[nick4notax]

God save Lord Clyde

On the other hand, you could keep your rate the same and pay your fair share of tax like everybody else. And still take home considerably more.

Fair share of tax? What's that exactly? Everybody else, btw, would largely opt to pay the minimum the law requires. What's more, the law expects individuals to plan their affairs to facilitate precisely that, see this: Lord Clyde Ayrshire Pullman Motor Services v Inland Revenue 1929 | Independent Financial Adviser Comprehensive Financial Planning Pension Investment Inheritance Tax specialists Chatham Medway Kent

This excludes those who are ideologically up their own backsides of course..

[TheFaQQer]

On the other hand, you could keep your rate the same and pay your fair share of tax like everybody else. And still take home considerably more.

Well, that's certainly one way to look at it.

Hasn't your employer got some work for you to do?

[vlc]

Yep he did.

"And we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed."

Gonna have interesting implications.
Anyone fancy a 6 month contract 150 miles away starting May 2016 working via an umbrella ?

Might this lead to clients (and or umbrellas ) offering contractors a company car, etc?
Really it would have been better to extend to employees more of the expenses tax reliefs self employed are entitled to.

[Zero Liability]

Well it's the pre-election budget? Will Osborne steal the election with a rabbit out of the hat? Will IR35 be abolished? Will Balls go red?

Yup, totally abol- oh wait...

Far from a rabbit, it is a rabid little terrier called "lets apply something like it to contractor expenses."

I wonder if you asked these stooges who intended to abolish it some years ago that very question, what the answer might be as to how it disappeared off their radar.

[PerfectStorm]

Fair share of tax? What's that exactly? Everybody else, btw, would largely opt to pay the minimum the law requires. What's more, the law expects individuals to plan their affairs to facilitate precisely that, see this: Lord Clyde Ayrshire Pullman Motor Services v Inland Revenue 1929 | Independent Financial Adviser Comprehensive Financial Planning Pension Investment Inheritance Tax specialists Chatham Medway Kent

This excludes those who are ideologically up their own backsides of course..

A 1929 test case? OK, I'll run with it

The taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue

Think it very much depends on your definition of honesty there.

[vlc]

It'll bother anyone who works away from home in a market competing with those who are local.

To compensate for not being able to claim expenses for working in London, you have to whack up your rate significantly because the employee has to pay that additional £10k (or whatever it costs you) out of their salary, which means you have to take that much more out of the company, incurring a 40% tax hit on it.

So you now need to add a minimum of £80 a day onto your day rate, which prices you out of the market.

Might be another nudge towards more working from home.

[nick4notax]

Ha ha, I suppose it does 😀
My guess would be it means compliant with the letter of the law but who knows?! The principle in law still stands though; a citizen is entitled to minimise their liability towards taxation however so legally accomplished. Fair enough, don't you think?

[Zero Liability]

A 1929 test case? OK, I'll run with it



Think it very much depends on your definition of honesty there.

Or Hector's. You can guess how much they esteem it from their approach to IR35 and other cases.