Official Summer 2015 Budget Thread

[FarmerPalmer]

Read the section from the Treasury document headed "Employment Taxes" I quoted above. The government will "start a dialogue with business on how to improve the effectiveness of existing IR35 legislation. The government wants to find a solution that protects the Exchequer and improves fairness in the system."

A few tweaks to the dividend rates will pale into insignificance if they get their way.

Why bother when there is the new Dividend Tax which can be tuned to raise the difference anyway

[SimonMac]

What about company contributions?

IANAA

I understand the limit is on all contributions, employer and employee

[Unix]

You must be on a very good rate, or in an area where the permie roles pay tulipe.

A decent Java dev in London, 10 years experience, can get 80/90K.

Let's take 90k, that's below 5k a month take home. The same calibre of dev could get 700 a day in London which works out around 10k a month take home. Rekt!

[d000hg]

I've seen it first hand. It is not a myth it is a fact. Sky tv, nice car, benefits lifers. Real aggressive types. Totally a moral. Take a trip to Edmonton... [emoji102] seriously there are thousands of proles...

I didn't say it was a myth, I said it was less common than the media make out and that in relative terms, the costs are quite small.

The system is clearly workable but I think there have been people who lived off the dole in this way since it was introduced. Certainly I remember references to people like that in books from (IIRC) the 40s/50s, wh never worked but always seemed to have money for beer.

[escapeUK]

I've seen it first hand. It is not a myth it is a fact. Sky tv, nice car, benefits lifers. Real aggressive types. Totally a moral. Take a trip to Edmonton... [emoji102] seriously there are thousands of proles...

I have several in my own family, getting very generous pay outs on either self inflicted disability (obesity 15+ stone) or minor complaints that dont stop them living a full normal life, except the work bit.

[MarillionFan]

They have cut the relief you get on pension contributions to 20% now instead of 40% for higher earners, not sure what the sums are like now

MIssed that bit, all I found was a reference to limiting tax relief on pension contributions to £10k pa.

I think that is the same think, £50k limit into a pension will only give £10k relief @ 20%

FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFF!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I was getting 45% tax relief on my pension and the fooker has just screwed my pension plans.Also on BTL!

FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFcking Tories!!!!!


TORIES OUT! TORIES OUT!

[tomtomagain]

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

But surely the big change is the divi's.

If you have a spouse ( or other director ) who had been taking out a sum of money as dividends then as long as they weren't a higher paid tax payer they could take a chunk tax-free with the dividend credit already having been paid for by the LTD company.

Now as soon as they take more than 5k in dividends ( from any source ) then they'll have to start paying tax, starting at 7.5%.

[SimonMac]

FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFFFFFFFF!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I was getting 45% tax relief on my pension and the fooker has just screwed my pension plans.Also on BTL!

FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF FFFFFcking Tories!!!!!


TORIES OUT! TORIES OUT!

From what I have read, BTL should be uneffected for me as I will never hit the 40% (or can mitigate so I stay below it)

[tomtomagain]

so it appears to me that anyone has been using family members or partners to move money a LTD in an efficient way has just had that loophole closed.

[MarillionFan]

From what I have read, BTL should be uneffected for me as I will never hit the 40% (or can mitigate so I stay below it)

I was using pension contributions and tax relief as a way to pull it back down.

Right. Time to open a loss making shop again where large amounts of cash disappear and can be offset against my income tax.