Official Summer 2015 Budget Thread

[AtW]

I confirm the Official status of this Summer 2015 "bend-over" Budget thread.

[tractor]

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

Clients pay the market rate to agents.

Agents will always take the least cost option. There are too many experts in the country for us to ever get the upper hand again. That died out prior to 1999.

[SimonMac]

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?).

You can pay as much as you want into a pension, but if your employer sticks in £50k, you won't get any tax relief on any extra that you put in personally

[Jog On]

I've got my head around an extra £2k/year from 7.5% on divis up to higher rate. I try and stay below the high rate anyway and keep money in the company as warchest (took the entire summer off last year and plan another long sabbatical when current gig expires).

I want to see the banks and non-doms and big businesses get hit though, in deed and not just words. I'm really sick of them coming after us and leaving them to do what they want - it's why I don't feel a tinge of guilt when managing my affairs.

Also this from RT (I know I know...)

Osborne has announced the UK will meet its commitment to spend 2 percent of its GDP on defense as symbolically required of NATO member states. The measure will applauded by NATO allies and military chiefs concerned about Britain’s role on the world stage.

http://rt.com/uk/272371-budget-conse...-expectations/

Didn't vote for them, and definitely didn't vote for that. How about a levy for arms manufacturers George?

[FarmerPalmer]

Which changes?

https://www.gov.uk/government/upload...on__print_.pdf

See Page 18:

3.12 For example, it has been suggested that a fundamental reform of the system so that pension contributions are taxed upfront (a “Taxed-Exempt-Exempt” system like ISAs)

[DaveB]

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

Back of a fag packet calc says it's still not worth it.

£100 paid into a pension by the company attracts £18 in tax relief (under the eventual new rate)

£100 paid out as divi costs £7.50 in tax and attracts £20 relief when paid into a pension offset by the divi tax gives a net benefit of £12.50.

Not worth it unless I've missed something.

[Unix]

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

What and 90k isn't?

[SpontaneousOrder]

What and 90k isn't?

Not really. In permie land the difference between 'senior' and 'dogs-bollox' is 10k a year in salary.
Meanwhile I'd be looking at 80-90k in London, while being a 450 - 500 per day contractor (in London).

Either way, without wanting to derail the thread, it's mainly the travel / hotel costs that make a permie job in London not worth considering for me. After this budget it's closer to being the only reason.

Up north I might be on 350 per day or 40k permie - that's a big difference. In London the difference isn't so big.

[SimonMac]

Back of a fag packet calc says it's still not worth it.

£100 paid into a pension by the company attracts £20 in tax relief

£100 paid out as divi costs £7.50 in tax and attracts £20 relief when paid into a pension offset by the divi tax gives a net benefit of £12.50.

Not worth it unless I've missed something.

Your sums are not quite right.

£100 paid into your pension from your company "costs" £80 given the CT you are saving
£100 paid into your pension from you, costs £20 in CT, £16 in Dividend Tax which means you are left with £59.20, relief will bump that upto £71.04

So paying personally you will be £8.96 worse off, for every £80 you want to put into your pension, so its still better to put it in from the company, however, I think paying into the pension personally used to mean that the limit for which you started paying 40% moved in line with the contributions you make which would mean you can take off more dividends without paying 40% income tax, I am not sure if this would mean you would still pay 7.5% rather than 32.5%

[Unix]

Not really. In permie land the difference between 'senior' and 'dogs-bollox' is 10k a year in salary.
Meanwhile I'd be looking at 80-90k in London, while being a 450 - 500 per day contractor (in London).

Either way, without wanting to derail the thread, it's mainly the travel / hotel costs that make a permie job in London not worth considering for me. After this budget it's closer to being the only reason.

Up north I might be on 350 per day or 40k permie - that's a big difference. In London the difference isn't so big.

So Up-North vs London you have the salary as 40k vs 90k but the daily rate 350 vs 450. Don't think so mate, this is first hit on Jobserve for London

https://www.jobserve.com/gb/en/searc...2ADC6D9FDF5F5/