The official Budget 2017 DOOM thread

[MPwannadecentincome]

The Ltd co contractor has the ability to income split to retain entitlement to child benefit.

oh I think I remember now, it is the higher earnings that are taken into account, if the income split is 50:50 then they retain entitlement.

[d000hg]

What are those benefits exactly, right to get £100 per week by the time I am 70?

Amongst other things.

Yet another budget aimed at us "tax dodging contractors".

Sigh. Again. There are not that many contractors around to make targeting us specifically worthwhile. You have to remember contractors like us are just one subset of "self employed and people working through limited companies". This much larger group includes most tradesmen, independent accountants and the like, 1-man web-design companies, journalists and who knows what else.

He mentioned that people shouldn't "get into self employment motivated by paying less tax". I don't think that's a reason many of us did it... we were motivated by higher rates not lower taxes.

[AtW]

Amongst other things.

What other things?

[PurpleGorilla]

They view it as a cost.

Small financial cost compared to the devastating impact of being hit by an uninsured untaxed and unMOTed vehicle.

[northernladyuk]

oh I think I remember now, it is the higher earnings that are taken into account, if the income split is 50:50 then they retain entitlement.

It's another good trick.

[AtW]

Small financial cost compared to the devastating impact of being hit by an uninsured untaxed and unMOTed vehicle.

HMRC makes money on it

[sal]

oh I think I remember now, it is the higher earnings that are taken into account, if the income split is 50:50 then they retain entitlement.

This, plus the childcare vouchers, with 2 parents working for the ltd. this is £486/m tax free childcare, which pays for like 2 days/week of Nursery in London...

[davethehedgehog]

Amongst other things.

Sigh. Again. There are not that many contractors around to make targeting us specifically worthwhile. .

I don't disagree that it's not worth doing. It's not about making money, it's about the signal it sends. To the people who won't ever move to self employment and also to those who're thinking about it. Different message to each, but equally politically beneficial.

I didn't personally do it for the tax benefits. Mostly because I hit a ceiling in permanent work that was unbreakable. I'm strictly legit and generate probably 2-3 times more tax than I ever did before, and my percentage paid is probably the same as it was previously.

But what this is doing is it's making me look at the money I've been putting to one side to invest, expand and employ. I'm thinking that since the rewards are shrinking in me spending that money on growth, then the risk is becoming less worth it. Especially with the complete mess I'm reading around rates.

What I'm thinking is that I need to reduce my productivity overall, work less and earn less. And that's a shame for all involved

[Jog On]

He mentioned that people shouldn't "get into self employment motivated by paying less tax". I don't think that's a reason many of us did it... we were motivated by higher rates not lower taxes.

I wish they'd stop hiding behind this "tax incentivised incorporation excuse" - when I started contracting I did for the higher rates and flexibility and not being tied to all the permy drama/politics etc. When I got my first gig the agent clearly said to me "so are you LTD or umbrella?". He then went on to explain that I had to chose either unless he wanted me to let him fill the role with someone else. Obviously I chose the cheaper option of the 2...

But they will keep wheeling it out and hiding behind it...

[TheCyclingProgrammer]

This, plus the childcare vouchers, with 2 parents working for the ltd. this is £486/m tax free childcare, which pays for like 2 days/week of Nursery in London...

Of course, two parents working in normal permanent jobs are also entitled to potentially the same amount of childcare tax free, depending on their salary.