The Official Budget 2016 thread

[BrilloPad]

That's my last word on this gidiot budget.

I forgive you for breaking your promise.....

[SimonMac]

Did I miss something, I thought that one didn't go through?

Went through for brollys only

[BlueSharp]

No you don't. They explicitly mention that double-taxation will not occur, as they will provide an allowance for all PAYE/NI paid upfront. So you'll be able to extract all income without CT. I suppose, in principle, if you retained profit, that would be subject to CT (depending on carry forward rules), but no one in their right mind would do that.

O.k. so you're assuming that the income will be exempt from CT because tax has already been paid which does make sense however the example specifically an exemption for NI/Income Tax not CT.

[suityou01]

Went through for brollys only

Ok thanks bud. I do recall that now I think back.

Sorry for being even dimmer than usual.

[d000hg]

Microbusiness, not tax dodging, UK destroying, enemy No.1 PSC.

Your business is a PSC if you, the director, provide the service yourself.

Now if your business, consisting of you the director, doesn't provide a service yourself, then you are a micro business.

Simples.

That was actually quite helpful (apart from that contractors are not as important as they think they are)

Beer and cider duty frozen.

Fuel duty frozen for the 6th year

Whisky too However I don't realise why these are absolute price per litre rather than a simple % so that they don't have to go through this rigmarole every year?

Life Time ISA?

Under 40's, pay in £4k a year, get £1k a year until you are 50, there must be a catch somewhere

You don't get the bonus if you withdraw it...

I think he said that was still under consideration actually.

Higher tax rate upped to £45k too!

All in it together, you see

More and more people are paying HRT because the point at which it kicks in is getting relatively lower and lower. You are not well off when you hit the HRT threshold which is surely the point of it.

So personal allowance up, income tax down and corporation tax down... weren't contractors whinging last year?

Maybe you're being sarcastic but as I watched through the live budget, it did sound like on balance it was good for working people. Maybe not for contractors due to dividend tax, but that this is at least mitigated for us by the other changes.

[mudskipper]

Went through for brollys only

And IR35 caught - so the public sector PAYE contracts from 2017.

[Bluenose]

And IR35 caught - so the public sector PAYE contracts from 2017.

I don't see a problem with what the treasury have done here.

[Andy2]

What if you are not directly contracting in public sector and go through one of the consultancies like accidenture et. al.
Do you still have to use PAYE ?

[WordIsBond]

Still says "Employment Allowance: withdraw from single person companies", so doesn't sound like they've tightened that up

They have, a little bit. Has to be two salaries now.

https://www.gov.uk/government/public...rking-people-1

[jamesbrown]

O.k. so you're assuming that the income will be exempt from CT because tax has already been paid which does make sense however the example specifically an exemption for NI/Income Tax not CT.

The point is that the amount of PAYE and NI paid upfront will, by definition, exceed the amount of CT that would otherwise have been paid on profits. Thus, there will be complete relief at the point the money is extracted through dividends. Obviously, I don't know the details, but I think this is the intent (and anything else would be silly...he says ).