Autumn Statement 2016

[TheCyclingProgrammer]

If you are paying ~£100pcm for your accountancy then doesn't that mean the 1% threshold is £10k sales per month?

Accountancy costs don't count. Only purchases of goods count under the new rule they are proposing.

My turnover varies but my annual costs (excluding salaries) probably amount to between 5-10% of my turnover, largely on services. I do occasionally buy hardware but not frequently enough to make any difference and capital expenditure is also discounted anyway.

[jamesbrown]

"The tax system needs to keep pace. For example, the OBR has today highlighted the growing cost to the Exchequer of incorporation.

So the government will consider how we can ensure that the taxation of different ways of working is fair between different individuals, and sustains the tax-base as the economy undergoes rapid change.

We will consult in due course on any proposed changes."

source:
Autumn Statement 2016 – chancellor’s full speech :: Contractor UK

Yeah, but these consultations have been going on forever. They wouldn't be going ahead with the IR35 changes if they had a grand plan for this Parliament. Perhaps in 10yrs, but contracting as we know it is likely to have changed dramatically by then (assuming they extend the IR35 reforms to the private sector).

[pr1]

I turnover half again over that figure, on a good year.
I suspect a lot of others do the same.

yes, I thought as much - meaning you'll still have to be registered for VAT - so I don't see where you think they (HMRC) are losing out by changing the FRS percentage, even on FS companies

[d000hg]

Accountancy costs don't count. Only purchases of goods count under the new rule they are proposing.

My turnover varies but my annual costs (excluding salaries) probably amount to between 5-10% of my turnover, largely on services. I do occasionally buy hardware but not frequently enough to make any difference and capital expenditure is also discounted anyway.

I'm struggling to think of any significant costs I have. £50pcm for home office is probably the largest and that's like 1%

[PurpleGorilla]

Guardianistas going apeshat on the comments section over the £120bn black hole. WGAF, full Brexit ahead baby!

[d000hg]

I'm waiting for the wave of bitching about the higher tax threshold increasing to 50k and "billions of pounds of tax cuts for the rich"

[eek]

I'm struggling to think of any significant costs I have. £50pcm for home office is probably the largest and that's like 1%

That's because you work from home.

Mine currently would be £80 a week digs and 250 miles of travel.

[VectraMan]

I'm struggling to think of any significant costs I have. £50pcm for home office is probably the largest and that's like 1%

Mine's £0. Doomed!

Getting rid of the 5% allowance for inside IR35 is a bit harsh. I know not many of us actually play by that rule, but does it encourage people to act as if outside? Or has that all changed too?

[TheCyclingProgrammer]

I'm struggling to think of any significant costs I have. £50pcm for home office is probably the largest and that's like 1%

I work from home mostly but despite that my admin costs - which includes accountancy fees, hosting and other online services, software, travel, subsistence, accomodation, hardware, office supplies and a few sundries - came to £5.5k in my last accounting period.

Now not all of those costs incurred VAT, some were zero-rated and some were non-UK services accounted for under the reverse charge (which are dealt with outside the FRS anyway). But I still paid enough to make close to a £1k loss under the new rules.

[d000hg]

That's because you work from home.

Mine currently would be £80 a week digs and 250 miles of travel.

More fool you

Hang on you pay £80 a WEEK for accommodation? You stay in the YMCA?