After Osbourne's attack on IT contractors

[AtW]

Now the Tories have shown the contempt for the flexible workforce, I don't feel any compunction about every tax dodging wheeze going.

Tories are just testing how flexible the workforce really is... by bending it over...

[DimPrawn]

Can you show your workings out? i.e what is an average contractor, what permie salary you compared it to, what salary/dividend setup they use, how you accounted for not paying (much) personal NI, etc?

I rather suspect your sums are about as valid as UKIP's pre-election budget.

Is it really worth it? - Contractor Weekly

The point at which incorporating a business to save tax has normally been when profits hit the £40,000 mark. If the director/owner extracts profits by way of salary below the NIC threshold and higher dividends, then there is a saving of around £2,500 per annum to be made. As from April 2016 however that will be dramatically reduced to approximately £600, which will be absorbed by the compliance costs of running a company anyhow!

[expat]

Is it really worth it? - Contractor Weekly

The point at which incorporating a business to save tax has normally been when profits hit the £40,000 mark.

True; but the point at which it is worth incorporating a business because without it you won't get any work, is about £0.

I keep telling people that I didn't incorporate in order to avoid tax; maybe now they will believe me. BIDI

[AtW]

There's quite a sense of entitlement amongst contractors. Apparently we're entitled to earn more money for a better working lifestyle, and to tax breaks as well.

What's the point to earn more money if it does not provide a better lifestyle???

[AtW]

You should have been an estate agent. With all the property ramping they are pulling in a fortune. Like £50k in fees on an average sale in the SE, and these houses sell themselves.

It's a pity you chose to pimp out some Romanians for £10/hr instead.

Yes, but he probably still makes £50k in fees

[BrilloPad]

What's the point to earn more money if it does not provide a better lifestyle???

Your idea of a better lifestyle is to own a bedsit in Birmingham and a new DFS sofa.

What is the point?

Apart from annoying us all with your lunch threads in general that is....

[AtW]

It's quite clear you don't pay voluntary tax/NI on your dividends and you don't pay all your companies profit out as PAYE, so you are a hypocrite and no one here will ever take you seriously.

That's technically not possible, all you'll end up with is payment on account with HMRC.

[AtW]

This government, and Osborne in particular, are determined to reduce the economic impact of the state on their kind of people to the absolute minimum. This involves reducing the outgoings on things that do not affect their kind of people (e.g. benefits, savings) and increasing the take from those other than their kind of people (e.g. by removing small-time tax breaks).

What people on here had not grasped until now is that we are not their kind of people. Well, you know now.

And who are THEIR people? Fox hunting Tory toffs?

[expat]

That makes 2 of us then. I thought it was just line noise.

Maybe it is.

[vetran]

Could you please explain this "paid the tab for your parents credit card binge" for me? I honestly don't know what you're talking about here.

I think its based on the latest spin which tries to blame our parents for having more money than us because the politicians then & now are incompetent and have failed to stabilise the economy so everyone gets a fair share.

Apparently some oik filling his nostrils with marching powder and lying about Libor is your Grannies fault because her private pension lost less than ours.