The official Budget 2017 DOOM thread

[PurpleGorilla]

Clients do, and they pay the (market) rate, and they also pay for kit for employees.

Yes but permies (especially civil servants) think that contractors are tax avoiding scum, they see an up-side (less tax) but are clueless to the down side (all employment perks self funded).

[MrMarkyMark]

Well said. The same old muppets here like marky mark (ooh, Im back to a 2 contractor income, dont you know?) and dhooog whatever keep trotting their same old tulipe.

Just another point, your English seems to be suffering a little old boy, have you been drinking with your medication again, or is it just the advanced onset of your senility

[AtW]

Full details:

https://www.gov.uk/government/upload...t_2017_web.pdf

[TheCyclingProgrammer]

Yes but permies (especially civil servants) think that contractors are tax avoiding scum, they see an up-side (less tax) but are clueless to the down side (all employment perks self funded).

Permie jealousy is completely misplaced - its not the so-called tax breaks they imagine we get that they should be jealous of, its the fact that we get to charge a significantly higher day rate compared to what they earn. Of course, if they have the skills and experience to do what the tax-avoiding contracting scum is doing, then why don't they do it?

[woohoo]

Detail time : https://www.gov.uk/government/upload...t_2017_web.pdf

Look if I wanted to think and understand something and form an unbiased opinion on it I would, but I'm on this forum instead. Can you read it for me and sum it up in a paragraph, no fancy accounting terms please?

[PurpleGorilla]

Detail time : https://www.gov.uk/government/upload...t_2017_web.pdf

Looks like the future is:

No benefits without them being benefits in kind
No accommodation
No expenses (travel would be a hammer blow)

[PurpleGorilla]

The official Budget 2017 DOOM thread

Permie jealousy is completely misplaced - its not the so-called tax breaks they imagine we get that they should be jealous of, its the fact that we get to charge a significantly higher day rate compared to what they earn. Of course, if they have the skills and experience to do what the tax-avoiding contracting scum is doing, then why don't they do it?

Greater risk - greater reward.

I'd rather be a wolf than a sheep.

[TheCyclingProgrammer]

Has anyone done the calculations to see how much the £3k dividend tax allowance reduction will be mitigated by the increases in the personal allowance and reduction in Corporation Tax?

I have a hunch that it will largely neutralise it. Personal allowance is £11.5k from April, potentially £12k from April next year, meaning we'll go from being able to take £16k in salary + dividends tax free to £15k in salary + dividends tax free, a tax increase of only £75. Add to that the reduced CT and increase in the higher rate threshold - which means we'll be able to pay ourselves more at the basic rate, and its really not that big a deal at all.

[SussexSeagull]

Sometimes gets forgotten that none of us have ever held a gun to a clients head and made them give us a contract. If it didn't work for them they wouldn't do it.

We have all made a judgement based on finance and personal circumstances to join the flexible workforce. The financial argument is dwindling year on year. More and more people are going to start drifting back to permanent employment where you will get paid holiday, maternity/paternity and your employer will have to pay to train and develop you. I imagine this is an unintended consequence but it makes industry less agile.

This is all of course nonsense at the end of half a century of a slow dance between us, the HMRC and industry. A majority of us should be freelancers and not incorporated. We should never have taken a separate path to other self employed people.

[AtW]

Has anyone done the calculations to see how much the £3k dividend tax allowance reduction will be mitigated by the increases in the personal allowance and reduction in Corporation Tax?

I have a hunch that it will largely neutralise it. Personal allowance is £11.5k from April, potentially £12k from April next year, meaning we'll go from being able to take £16k in salary + dividends tax free to £15k in salary + dividends tax free, a tax increase of only £75. Add to that the reduced CT and increase in the higher rate threshold - which means we'll be able to pay ourselves more at the basic rate, and its really not that big a deal at all.

The big deal is that Ltds are firmly in aims of HMRC now - Autumn budget will bring proper DOOM.