Official Summer 2015 Budget Thread

[SpontaneousOrder]

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!

700 per day is very high end (for a java dev at least).

[FarmerPalmer]

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)

Even when the proposed pension changes come in ?

[PurpleGorilla]

Guys don't forget the rent a room going up to 7.5k that's £650 more off your CT.

[SimonMac]

Even when the proposed pension changes come in ?

Which changes?

[rl4engc]

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.

It's still more efficient to use their tax allowance though. Mrs.RL4 works part time, but gets 49% of the dividends from myCo. She'll still be below the 40% earnings bracket, the difference now is we'd have to pay 7.5% each on all dividends above £5k, in my case I think that's about £1600 a year each.

I'd expect day rates to migrate upwards to compensate.

[expat]

IANAA

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

I am talking about tax relief "being reduced from 40% to 20%". ISTM that company contributions do not attract relief per se, rather they are not taxed. Will they now attract tax, and if so, what kind? (CT? Income Tax? NIC?).

[d000hg]

700 per day is very high end (for a java dev at least).

So is 90k per year. Probably comparable for the top-end of the pay-scales in each?

Guys don't forget the rent a room going up to 7.5k that's £650 more off your CT.

What?

[AtW]

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]

I'd expect day rates to migrate upwards to compensate.

That ain't going to happen! It's not your customers problem that your tax structure has changed!

(Same argument was used when IR35 was first mooted ... Rates will rise to compensate. )

[d000hg]

Clients pay the market rate. If that goes up, they pay more.