Dividends beyond £5k taxed wef 2016!!

[Jog On]

That was said when IR35 came in. Guess what? Didn't happen.

What's made contracting attractive to most people seems to be the increase in take-home pay, coupled with increased independence. Not the ability to reduce the percentage of tax paid on overall income.

I did say I don't want to be Branson. But why should anyone who takes the risk and suffers the disadvantages of not having regular bigco employment not be afforded the same advantages as any other company/director?

This is what get's me as well. We make a choice to take on risk and provide flexibility that many businesses enjoy and that HMG also use extensively. yes we get paid more and in order to find work we have to either incorporate or go brolly. I don't think anyone gets into contracting to avoid tax - that's just a side effect of how we are forced to function.

Higher rates, flexibility, no permie HR nonsense - this is why most of us work this way. The fact that we can and do pay ourselves as directors is because of clunky employment laws that mean agencies demand that we do. Or go brolly and pay brolly fees.... LTD is more cost effective so obviously those that can be bothered will do it.

How hard would it be to make it so that we can just be self employed and agencies don't get stuck with the NI or whatever it is that prevents us from doing it...

How many of us given the option would ditch the LTD/accountant/brolly and just go self employed if we had the option - poll maybe (if it hasn't been done already)?

[NorthWestPerm2Contr]

Dubai just become another 7.5% more attractive.

[PurpleGorilla]

Dividends beyond £5k taxed wef 2016!!

I did say I don't want to be Branson. But why should anyone who takes the risk and suffers the disadvantages of not having regular bigco employment not be afforded the same advantages as any other company/director?

Lest we forget VAT we bring in too.

VAT + CT + NI + IT = HMRC [emoji383]

[NorthWestPerm2Contr]

Lest we forget VAT we bring in too.

VAT + CT + NI + IT = HMRC [emoji383]

VAT doesn't bring hmrc any money in our case. It's just a merry go round.

[AtW]

VAT doesn't bring hmrc any money in our case. It's just a merry go round.

He was probably talking about his strip club expenses -

Strip Club Expense | AccountingWEB

[Zero Liability]

Um, contractors who will be substantially affected by this ARE the rich - or at least the top few % of earners. You maybe forget what most people earn.

The contractors who earn this much are not the "rich", they are just high earners by and large. When people refer to the actual rich, they are referring to those whose net worth is in the tens of millions or more. How many contractors fall into this category?

That said, I don't think "the rich" were spared by this budget. It is a huge tax grab.

[VectraMan]

This is what get's me as well. We make a choice to take on risk and provide flexibility that many businesses enjoy and that HMG also use extensively. yes we get paid more and in order to find work we have to either incorporate or go brolly. I don't think anyone gets into contracting to avoid tax - that's just a side effect of how we are forced to function.

Contractors don't take on any real risk. There's pretty much no chance you'll lose money; only that you won't earn it. I know you can argue that it's the same thing, but permies are in the same boat. And even if you do have a Ltd. you can still pay your full amount of tax just by paying it all on PAYE. Tax avoidance is not a side effect of the way you're forced to function; the opportunity to engage in tax avoidance is a side effect of the way you're forced to function.

They should have a type of Ltd. company with no CT, no accounts to file etc., where all you need to do is pay yourself what you want when you want and fill out a tax return once a year.

[d000hg]

I did say I don't want to be Branson. But why should anyone who takes the risk and suffers the disadvantages of not having regular bigco employment not be afforded the same advantages as any other company/director?

Because they're earning £100k/year for a £50k job, and that makes up for it?

[ZARDOZ]

Summer Budget 2015: a mixed bag for small businesses | AccountingWEB

Employment allowance gone too. Tories have fecked contractors. Good while it lasted but looks like it's time to bail out.

[tractor]

....

Contractors don't take on any real risk. There's pretty much no chance you'll lose money; only that you won't earn it. I know you can argue that it's the same thing, but permies are in the same boat. And even if you do have a Ltd. you can still pay your full amount of tax just by paying it all on PAYE. Tax avoidance is not a side effect of the way you're forced to function; the opportunity to engage in tax avoidance is a side effect of the way you're forced to function.

They should have a type of Ltd. company with no CT, no accounts to file etc., where all you need to do is pay yourself what you want when you want and fill out a tax return once a year.

Of course they do.

We have developed the contracting model to fill a need for flexible knowledge based resource. When the legislation that required us to incorporate was introduced, there was no such thing as mainstream computing. Indeed, the legislation was aimed at the building trade to counter avoidance by them and the agencies that encouraged it. Only the largest manufacturers in the world, typically Japan and the US could afford to even contemplate developing and implementing manufacturing/process methodologies. The flexible tax dodger made that a possibility for millions of smaller companies worldwide by investing their own time and money into their knowledge. That was a risk in itself which appears over the years to be delivering a tapering benefit. So much so that within a few years, any benefit is likely to have been lost forever.

How many permies stay awake all hours on their own time for free learning new tech to improve the lot of the bigco that employs them?

And Gideon is already whining and crying about lack of and lost productivity.