Dividends beyond £5k taxed wef 2016!!

[SpontaneousOrder]

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

How much would all of the necessary insurances - to cover illness, redundancy, maternity leave, income protection, etc - cost out of that 100k in order to make that 100k job actually comparable to the 50k job?

I'm not saying it's 50k. Just that it's not really that simple.

[Zero Liability]

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

No, the total value provided to the client, in terms of the total cost they are willing to incur for the resource, is what drives how much the job is "worth", not how much a permie could get for it, which comes with an array of associated costs over and above the salary.

[SpontaneousOrder]

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?

This.
I've worked so hard over the last 2 years - spending almost all of my free time trying to make myself a valuable asset in a competitive and fluid marketplace. I told my other half that I'll have more time to relax with her once I've built up some security (in the form of human capital).

Now things like this feel like a huge kick in the teeth. Perhaps I would have been better off taking it steady as a permie and enjoying two years of my youth, rather than sacrificing them as an investment. It's not disastrous - but now why shouldn't I think it will get even worse next year, or the year after?

The problem is that all productivity requires investment, and greater productivity requires greater investment. How can people like us be expected to make that investment without any confidence that the rug will be puled out from underneath us at any time?

This is why third world countries in Africa are such tulip-holes - because without strong property rights there is no incentive to invest in productivity.

The same applies here, even in a much smaller form. The present is always worth more than the unknowable future which may or may not come; and if we're to invest in the now we need the freedom to offset that risk with potential future gains according to our efforts & abilities.






Ourselves aside - we all know that businesses use contractors because its cheaper (otherwise they wouldn't do it). So dis-incentivising that cheaper resource works contrary to their idea of lowering CT & making "UK open for business".
In the short term some politicians can try to balance the books without spending less. In the long term it just makes everything more wasteful (i.e. it lowers the quality of life for everyone).

[vwdan]

Hmm, I've wound up being talked into going to two permie interviews this week. One of them was already making the right sounds financially - this may well just make any decision a little easier.

[tractor]

....

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

I have kids who know the cost of everything and the value of nothing.

[PerfectStorm]

It will folow the personal tax bands so

£0 - £5000 = 0%
£5000 - £43000 = 7.5%
£43,000 - £150,000 = 32.5%
£150,000+ = 38.1%

Of course! Thank you x

[d000hg]

So here's a question. Don't we currently get this tax credit system where each £1000 actually drawn net from the company, counts as £1100 from your personal allowance (or similar, I haven't thought about this since last year)? Does that whole aspect of things disappear entirely in the new system and if so how does that affect things? I haven't seen this part taken into consideration but I may have misunderstood and it makes no difference?

[Underbase]

So here's a question. Don't we currently get this tax credit system where each £1000 actually drawn net from the company, counts as £1100 from your personal allowance (or similar, I haven't thought about this since last year)? Does that whole aspect of things disappear entirely in the new system and if so how does that affect things? I haven't seen this part taken into consideration but I may have misunderstood and it makes no difference?

Reading far more into it than should, I would say that is gone because the voucher credit system is what he wanted to do away with.

[stek]

So here's a question. Don't we currently get this tax credit system where each £1000 actually drawn net from the company, counts as £1100 from your personal allowance (or similar, I haven't thought about this since last year)? Does that whole aspect of things disappear entirely in the new system and if so how does that affect things? I haven't seen this part taken into consideration but I may have misunderstood and it makes no difference?

Yeah I was wondering that too - I'm waiting for my Nixon Williams email explaining it all what to do....

In the meantime I'm watching 'Angela's Ashes' to cheer myself up....

[AtW]

I'm waiting for my Nixon Williams email explaining it all what to do....

PANIC!!!