Official Contractor UK Budget Thread 2017

[Zero Liability]

That's the usual pattern, but remember this gov't is very weak. Ordinarily, they wouldn't have thought twice about rolling this out (at the current stage in the electoral cycle) but HMG is fatally weak, and the industry pushback/coverage was strong. The consultation is another opportunity to trash the story coming from HMRC w/r to minimal impact, so I wouldn't say the outcome is a foregone conclusion just yet, although reform is inevitable in the long run. I thought there would be a much stronger nod to the rollout in ~2019, but there wasn't.

Yup! I'd say 2020 at this point. The Consultation and subsequent discussion will run into the 2018 Budget in all likelihood; the private sector is substantially more complex, cost-sensitive and innovative than the public sector and they probably know the reaction to this measure could blow up in their faces badly, even outside of Tory party big business backers turning on the party. They took a year before implementation in the public sector following the announcement, so I would not be surprised if this follows suit. 2019 at the earliest, 2020 possibly more realistic. 2018 rollout now seems all but impossible and I don't think it ever was a realistic prospect.

Of course they should be abolishing the measure, and let the dividend tax stay in place until they come up with a more sensible alternative to spend spend spend and more spending and sticking employees and what they wish were employees with the bill. Instead, just more consultations on that too?

[ChimpMaster]

On another point: I'm happy Hammy left ER alone for now. Gives me another year hopefully to work myself out of contracting.

[ChimpMaster]

That's exactly what will happen and what the OBR predicts will happen. Actually, worse, because it's a permanent measure. They predict a 2:1 ratio on house prices, so each pound saved will lead to 2 quid on asking prices, largely through 2018. The OBR is absolutely scathing about the policy and say it will do the exact opposite of helping FTBs (unless you've purchased recently and the sale is going through now).

Prices will go up at the lower end of the market, for sure.

We've got a renovation going through that we're now hoping for a slightly better price on when we come to sell next year. Not necessarily due to a FTB being able to afford more, but due to increased demand from FTBs and associated competition from BTL purchases.

This was a complete showhorse of a budget for Hammond. In effect he's done very little right now. The £billions for house building is mainly as a lender of last resort to the construction trade and he'll be hard-pressed to find land to build on seeing as he's promised to protect the greenbelt.

Hammond should have reduced SLDT across the board, at least temporarily, like reduce SLDT to 5% for 2 years. He hasn't helped anyone higher up the chain, so the market remains stuck. Thicko Hammond and his goonies need to understand that it's called a chain because, well... it's a chain FFS.

[jamesbrown]

I'm still not convinced it will make a massive difference. If anything, I wouldn't be surprised to see sellers with houses up to £295k upping their prices by 5% in response.

That's exactly what will happen and what the OBR predicts will happen. Actually, worse, because it's a permanent measure. They predict a 2:1 ratio on house prices, so each pound saved will lead to 2 quid on asking prices, largely through 2018. The OBR is absolutely scathing about the policy and say it will do the exact opposite of helping FTBs (unless you've purchased recently and the sale is going through now).

[TheCyclingProgrammer]

It might be a long time since you bought your first house

Two and a half years ago actually. We completed just after the previous stamp duty changes which saved us about £6k - this was helpful, but it had no bearing on whether or not we were able to afford the house or the mortgage or how long we had to save up for a deposit. It might have made a small difference if the £6k if we had been close to a LTV threshold.

I'm still not convinced it will make a massive difference. If anything, I wouldn't be surprised to see sellers with houses up to £295k upping their prices by 5% in response.

[jamesbrown]

Can't find any mention of lower dividend threshold in the Autumn version. Does that mean its still happening or has it now been dropped?

I assume you mean the reduction in the zero-rated band. Yes, it's there. Still declining to 2k from April 2018 onwards.

[SouthernHarrier]

From the Red Book :
https://www.gov.uk/government/upload...t_2017_web.pdf



Higher NICS and Lower Dividend threshold.

Can't find any mention of lower dividend threshold in the Autumn version. Does that mean its still happening or has it now been dropped?

[SueEllen]

Are you moving out of London?

Nope

[saptastic]

Summary here:

Autumn Budget 2017: Consultation on extending April IR35 reforms to private sector promised :: Contractor UK

[SeanT]

They don't know what the individual is getting when C&A fleece them for 2k/day though.

If they did, they'd be really angry at the value for money...