The Official Budget 2016 thread

[SueEllen]

Doesn't always help. The last time I worked for the PS I asked for a draft contract from the agency and had it reviewed with a 'pass' mark while the client was still deciding. The contract they then put up online for me to sign was instead the standard Crapita contract. When I asked why, they said that Capita now requires it for reasons of that vague, undefined excuse that agencies love to call 'compliance'.

The agency were lying to you.

Agencies have refused to give me a copy of the contract before they have had the raised purchase order whether public or private sector. Then once I've said I'm getting it reviewed have sometimes given me a completely different contract regardless of sector.

The longer I've been contracting the less tricks they pull on me but I've have walked away from contracts over non-sensical wording.

[WordIsBond]

Re: the personal allowance increase and the higher rate threshold increase, these are hardly a surprise. We've been told it was going to be £12.5K and £50K by 2020. He was never going to just jump it up all at once. Of course these are going to be increasing every year.

Slightly higher than I'd have expected, maybe. If he increases by £500 and £2K every year, he'll hit £13K and £51K by 2020/21. But that's not earth-shaking.

The increases made for a nice announcement for Georgie, but it was already announced when they set out where these thresholds will be in 2020.

[d000hg]

Allowance up by a tiny amount NEXT year - not everybody gets it.

High rate threshold is up by tiny amount NEXT year.

Corporation tax will be up by tiny amount in April 2020, followed by Labour landslide in May 2020 and emergency budget June 2020 with corp tax returning to 28%.

This in no way makes up for massively increased tax on dividends that kicks in NEXT MONTH.

Big jumps in thresholds would be silly. The point is they are trending upwards.

Dividend tax may be a big deal to contractors and some small business owners but you have to remember, we are a niche. Budgets are not geared around us, we win or lose almost by accident depending which changes we get caught up in.

Besides, dividend tax really only more closely aligns us with employed people as far as tax take goes. And we earn more to start with.

[m0n1k3r]

Big jumps in thresholds would be silly. The point is they are trending upwards.

Dividend tax may be a big deal to contractors and some small business owners but you have to remember, we are a niche. Budgets are not geared around us, we win or lose almost by accident depending which changes we get caught up in.

Besides, dividend tax really only more closely aligns us with employed people as far as tax take goes. And we earn more to start with.

We are employees, employed by our own companies.

[DimPrawn]

This thread is going to run a very long time....

[TheFaQQer]

The people implementing the ESI will be PSC contractors.

IIRC, Oracle are implementing it.

[AtW]

This is to attempt to reward entrepreneurs to build businesses and grow the economy.

The reward should be for having the business CONTINUE to operate, meaning producing profits to pay dividends, which in turn requires jobs - that's more important overlong term than one off sale which can happen offshore - CGT does not generate much money for that reason.

So, a good long-term Govt would have better dividends regime than CGT.

[AtW]

Corporation tax will have fallen from 28% to just 17% by 2020, clearly a support for business.

But highest tax on dividends is up from 25% to 38.1% from April 2016 (ie - now).

1000 profit under old regime had 54% left in pocket (1000*0.72*0.75), but under new pro-business regime RIGHT NOW it's 1000*0.8*0.619=495.2 - 10% worse than under Liebor. When (or if) 17% corp tax kicks in the result will be around 5% still WORSE than under Liebor.

Obviously next coalition SNP-LAB Govt will increase corp tax rates first thing in June 2020 - I reckon 25% at least.

So, for a business owner would make sense to sell up, pay 20% CGT and fook off from this country to avoid future punitive taxes - that's the course of action the Govt pushes for.

[AtW]

Big jumps in thresholds would be silly. The point is they are trending upwards.

I am (and many others) robbed of my personal allowance, so for me "increase" in allowance just means I would have been taxed at punitive rates if had income between £100k and £120k - that gap is now increasing.

Dividend tax is very important for business because with higher tax on profitable business the value of the business also goes down - at least in cases when the buyer is local UK company.

Essentially Tory Scum are saying - sell your business to a foreign company. The buyer might just choose to shutdown or RELOCATE the company elsewhere, how is that good for UK economy???

Note here: I am very happy with much more reasonable 20% CGT, however, new dividends tax is totally unreasonable - Tory Scum just care about high one offs rather than sustainable long term profits.

[d000hg]

We are employees, employed by our own companies.

I'm a director not an employee

Dividend tax is very important for business because with higher tax on profitable business the value of the business also goes down - at least in cases when the buyer is local UK company.

You're looking to sell SKA?