Official Summer 2015 Budget Thread

[SimonMac]

A personal allowance move of a few hundred quid here and there makes the difference of a coupe of bottles of bolly a year.

This, if you take out lets say 70k a year, is closer to a a couple of nice holidays abroad per year.

The number of contractors who take out £70k in dividends a year are small, most would stick things into a pension before taking that amount out

[DimPrawn]

We have been thrown under a bus

Tories only care about big business and party donations - banksters, building companies, land owners.

Labour only care about public sector and unions - borrow and spend, Greek style public sector producing feck all.


Take your pick.

[SimonMac]

One question if the NI allowance of 2k (going up to 3) is removed for sole director sole employee. What if the wife is 50% owner and does the books with the odd bit of contracting.

I guess that would still be seen as a single employee so stil a one man band (even with two people)

[escapeUK]

The number of contractors who take out £70k in dividends a year are small, most would stick things into a pension before taking that amount out

Would they really? I thought everyone realised pensions were total scams now days. Id rather retain the money in the company, at least then its mine whenever I want it and in the most tax efficient way possible.

[Unix]

Yes. Add all those paid holidays, sick pay, maternity scam and the balance looks less exciting.

Nonsense, even if I only worked 6 months on my rate I would still take home more than the average permie.

[FarmerPalmer]

One question if the NI allowance of 2k (going up to 3) is removed for sole director sole employee. What if the wife is 50% owner and does the books with the odd bit of contracting.

It does give you an incentive to employ your wife to do the admin, just so you can claim the employers allowance, if you pay yourself over the NI threshold.

[tractor]

Define significatly?

We are still better off than permies

It is not a major jump to accept that SM meant 'significantly worse off than we would otherwise have been'

[Unix]

Would they really? I thought everyone realised pensions were total scams now days. Id rather retain the money in the company, at least then its mine whenever I want it and in the most tax efficient way possible.

I think he is talking about SIPPS, where you manage the funds yourself, it's more like investing the extra profits.

[DaveB]

Would they really? I thought everyone realised pensions were total scams now days. Id rather retain the money in the company, at least then its mine whenever I want it and in the most tax efficient way possible.

I'm still paying into a SIPP as one part of the future planning. Keeping money in the company is another, investments elsewhere another still.

Do the sums work in favour of paying a pension personally now? It was always a bit 50/50 before. Paying personally now and getting the tax credit personally to reduce your (dividend) Income Tax rather than pay it out of the company?

[WordIsBond]

I guess that would still be seen as a single employee so stil a one man band (even with two people)

Make her a director. And each take £11K in salary (next year). Use the employment allowance. You'll still have to pay employee's NI on the amount over the NI threshold, but you'll be saving CT and dividend tax.