Official Summer 2015 Budget Thread

[d000hg]

Dividends aside, I'm liking the "Benefits Bonfire" vibe, it's been a lifestyle choice for some for far too long IMHO.

Do you have direct experience of that or did you read it in the paper?

It certainly happens, but I don't think it's anywhere near as common as is made out - and the overall cost to the tax payer is not very high in the grand scheme of things.

It's just the flip-side of cracking down on "aggressive avoidance" - a fairly minor issue which is great PR.

[SimonMac]

**** me!

Nice increase in the minimum wage, guess they mean business when they want wages to rise rather than tax credits

[TheFaQQer]

Employment intermediaries and tax relief for travel and subsistence – As announced at March Budget 2015, the government has published a consultation document alongside the Summer Budget on detailed proposals to restrict tax relief for travel and subsistence for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. The changes will take effect from 6 April 2016. (Finance Bill 2016)

IR35 reform – The government will engage with stakeholders this year on how to improve the effectiveness of existing intermediaries legislation (‘IR35’) which is designed to protect against disguised employment. A discussion document will be published after Summer Budget 2015.

[tractor]

.....

Chancellor claims CT is archaic and complicated then introduces another 3 band tax with allowances shocker

[TheFaQQer]

**** me!

Nice increase in the minimum wage, guess they mean business when they want wages to rise rather than tax credits

Current £6.50, rises to £7.20 and £9 by 2020, so plenty of time to change that.

[tractor]

.....

Employment intermediaries and tax relief for travel and subsistence – As announced at March Budget 2015, the government has published a consultation document alongside the Summer Budget on detailed proposals to restrict tax relief for travel and subsistence for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. The changes will take effect from 6 April 2016. (Finance Bill 2016)

IR35 reform – The government will engage with stakeholders this year on how to improve the effectiveness of existing intermediaries legislation (‘IR35’) which is designed to protect against disguised employment. A discussion document will be published after Summer Budget 2015.

No doubt it is already on the blocks and ready to go - scary!

[administrator]

2% cut in 2017. Change in dividends in 2016.

1% cut in 2017 and then another per cent in 2020...

[TheFaQQer]

The government will set the dividend tax rates at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers. While these rates remain below the main rates of income tax, those who receive significant dividend income – for example due to very large shareholdings (typically more than £140,000) or as a result of receiving significant dividends through a closed company – will pay more.

[TheFaQQer]

1% cut in 2017 and then another per cent in 2020...

That's what I meant to type, but was multi-tab. Honest.

So we get the hit now and the better bit in five years time.

[tomtomagain]

The government will set the dividend tax rates at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers. While these rates remain below the main rates of income tax, those who receive significant dividend income – for example due to very large shareholdings (typically more than £140,000) or as a result of receiving significant dividends through a closed company – will pay more.

The dividend move seems like a more effective way of fixing the "IR35 Problem". Basically you will pay 18% corp. tax. Get a 5k allowance and then tax starting at 7.5% on all other dividends.