Why we MUST ditch our lazy attitude to finding work through agents and agencies

[Danglekt]

all my contracts so far have been direct with clients.

Next I'll start calling myself a "real contractor"

[CloudWalker]

So how much would this affect me... ?
Most of my gigs are in London and I pay £96 pw on a rail card which I clame back in full through my company on my monthly expencies.
So if this comes in thats £384 pm I can't clame back, but surely my dividends would increace?

[suityou01]

So how much would this affect me... ?
Most of my gigs are in London and I pay £96 pw on a rail card which I clame back in full through my company on my monthly expencies.
So if this comes in thats £384 pm I can't clame back, but surely my dividends would increace?

[The Spartan]

So how much would this affect me... ?
Most of my gigs are in London and I pay £96 pw on a rail card which I clame back in full through my company on my monthly expencies.
So if this comes in thats £384 pm I can't clame back, but surely my dividends would increace?

Not unless you want to hit the higher limit.

[LondonManc]

Ah, so the long game may be to push us into collecting larger warchests?

[CloudWalker]

Not unless you want to hit the higher limit.

Great And They keep changing the MAX Dividend threshold each year:

Tax year Salary Max net dividend
2004-05 £4,745 £28,260
2005-06 £4,895 £29,160
2006-07 £5,035 £29,970
2007-08 £5,225 £31,140
2008-09 £5,435 £31,860
2009-10 £5,715 £34,344
2010-11 £5,715 £34,344
2011-12 £7,225 £31,725
2012-13 £7,605 £31,383
2013-14 £7,755 £30,326
2014-15 £7,956 £30,518
2014-15 £10,000 £28,679
2015-16 £8,060 £30,893
2015-16 £10,600 £28,607

[The Spartan]

Great And They keep changing the MAX Dividend threshold each year:

Tax year Salary Max net dividend
2004-05 £4,745 £28,260
2005-06 £4,895 £29,160
2006-07 £5,035 £29,970
2007-08 £5,225 £31,140
2008-09 £5,435 £31,860
2009-10 £5,715 £34,344
2010-11 £5,715 £34,344
2011-12 £7,225 £31,725
2012-13 £7,605 £31,383
2013-14 £7,755 £30,326
2014-15 £7,956 £30,518
2014-15 £10,000 £28,679
2015-16 £8,060 £30,893
2015-16 £10,600 £28,607

There will be no net dividend from next financial year, as the 10% credit is being abolished so it should be up to the gross amount when the dividend tax is introduced.

[vetran]

Great And They keep changing the MAX Dividend threshold each year:

Tax year Salary Max net dividend
2004-05 £4,745 £28,260
2005-06 £4,895 £29,160
2006-07 £5,035 £29,970
2007-08 £5,225 £31,140
2008-09 £5,435 £31,860
2009-10 £5,715 £34,344
2010-11 £5,715 £34,344
2011-12 £7,225 £31,725
2012-13 £7,605 £31,383
2013-14 £7,755 £30,326
2014-15 £7,956 £30,518
2014-15 £10,000 £28,679
2015-16 £8,060 £30,893
2015-16 £10,600 £28,607

its been about £38k since 2008? Was 333-34 before that. They have however doubled the tax free amount.

[vetran]

HMRC's beef is that more people than HMG intended are getting tax relief on T&S expenses. We can assume that this is due to the fact that vast numbers of low paid workers have been forced to work through brollies or PSC's so that companies can avoid employment costs. If that's the case then why not implement something along the lines that Eek's suggested but rule that workers under a certain income threshold cannot be engaged through an intermediary - that would move them all back into permanent employment or FTC's (banning of zero hours contracts would prevent exploitation) and lots of HMRC's problems would be solved. By constantly aligning tax legislation to employment law they have to use a sledge hammer to crack a nut most of the time - if they stick with numbers all our lives will be a lot easier

New lie forced employment costs on almost every employer and Agency. Large companies realised they could force people to pay to work by making them incorporate and work self employed.

Instead of finding new ways to tax people they should look for ways to stop employers screwing the vulnerable. With the exception of a few posters on here I wouldn't count us as 'vulnerable'.

As for IR35 I'm all for an employees & 80/20 rule to start selection then follow with some concrete tests e.g. significant expenses,premises, staff , advertising, creation of product, liabilities etc.

[suityou01]

There will be no net dividend from next financial year, as the 10% credit is being abolished so it should be up to the gross amount when the dividend tax is introduced.

With crayons, and Alphabites please explain what you just said.