Chancellor’s contractor cash grab will cost UK £16.6bn, warns Danbro

[LucidDementia]

It doesn't mention pie shops, Travelodges or brothels. It says it'll cost contractors £200 p.w. on average. And contractors will still need pie shops, Travelodges and brothels when they realise that they can still earn more contracting even after the changes.

I call bollocks on that article.

I'm looking for your logic here but can't find it. Please explain?

Treasury get roughly £265m so that's less than £20 per contractor, but the same contractor pays out an extra £10k for the trouble, based on the averages.
I can't speak to the validity of the numbers, I didn't write the article, but I can see the folly even if it's vaguely accurate.

[MrMarkyMark]

I have never stayed away because I have a young family, so your telling me if I am a Mon-Fri contractor away I get to eat pies, sleep in a TravelLodge and... err.?

Sounds like paradise, doesn't it.

As I have said before, it won't affect me, but, I don't agree with it, as big consultancies will still be able to claim.
Some people on a higher rate may still do the travel, but, I suspect, there will be plenty that won't, on a lesser day rate.

I'm looking for your logic here but can't find it. Please explain?

In any case, he is of the opinion that contractors shouldn't be able to claim T&S, because Perms don't.
At least that is what he has told me before.

[LucidDementia]

Sounds like paradise, doesn't it.

As I have said before, it won't affect me, but, I don't agree with it, as big consultancies will still be able to claim.
Some people on a higher rate may still do the travel, but, I suspect, there will be plenty that won't, on a lesser day rate.

Personally whenever I've need to stay away I've sought to keep the costs down as it just makes sense so this would never hurt me too much personally, still don't think it's a good move, but then what is?

[LucidDementia]

In any case, he is of the opinion that contractors aren't really businesses.
At least that is what he has told me before.

FTFY

[VectraMan]

I'm looking for your logic here but can't find it. Please explain?

Treasury get roughly £265m so that's less than £20 per contractor, but the same contractor pays out an extra £10k for the trouble, based on the averages.
I can't speak to the validity of the numbers, I didn't write the article, but I can see the folly even if it's vaguely accurate.

I don't have any logic. It doesn't make sense. If it collectively costs contractors £1.6bn, and £265m goes to The Treasury, where does the other £1.33bn go?

[MrMarkyMark]

Personally whenever I've need to stay away I've sought to keep the costs down as it just makes sense so this would never hurt me too much personally, still don't think it's a good move, but then what is?

Indeed, but, we have guys from all over, Dublin, Manchester, Glasgow and that is just the team, here, working with me.

[Project Monkey]

"The Government is planning to scrap tax relief on travel expenses for Britain’s army of contractors in a move that will cost each freelancer an average of £200 a week – totalling £16.6bn a year for the UK’s 1.6m contractors."




Hang on a minute: £200 a week cost, assuming 20% CT, that's £1000 expense per week! Isn't it?


Who the chuff claimes £1000 a week?

[PurpleGorilla]

Sounds like paradise, doesn't it.

As I have said before, it won't affect me, but, I don't agree with it, as big consultancies will still be able to claim.
Some people on a higher rate may still do the travel, but, I suspect, there will be plenty that won't, on a lesser day rate.



In any case, he is of the opinion that contractors shouldn't be able to claim T&S, because Perms don't.
At least that is what he has told me before.

If you are a permie on site A and need to travel to client site B you can claim the travel.

I work at site A (home office) and travel to client site B, and I can't claim (even if I have Client C and D and E).

The hypocrisy is gigantic.

Oh and small consultancy sends their minions off to the clients and gets to charge/pay T&S?

**** the chancellor.

[LucidDementia]

"The Government is planning to scrap tax relief on travel expenses for Britain’s army of contractors in a move that will cost each freelancer an average of £200 a week – totalling £16.6bn a year for the UK’s 1.6m contractors."




Hang on a minute: £200 a week cost, assuming 20% CT, that's £1000 expense per week! Isn't it?


Who the chuff claimes £1000 a week?

This I just don't know, but I can see how, especially in Central London.

[MrMarkyMark]

Who the chuff claimes £1000 a week?

Hotels, meals, hookers, coke....

The rest wasted