Official Contractor UK Budget Thread 2017

[d000hg]

Nice headline tax break, but in reality does a £5k tax cut really address the problem of first time buyers not being able to afford property (down south anyway)?

It might be a long time since you bought your first house, but £5k less cash to find is pretty significant. On a 95% LTV for a £300k house, you've cut the cash needed by 25%.



This thread is hilarious to read in hindsight. Page after page of smug "oh but he's just about to do X" posts all left hanging, as if proof were needed that CUKkers know jack tulip about these things

Seems like it's all OK for now. Crisis staved off for another year.

[AtW]

In my case it just makes my current property much easier to sell, which is why I said it is time to move house.

Are you moving out of London?

[AtW]

Official threads get on average a lot more responses than otherwise

[Guvernator]

Maybe we need some PR people. Our slogan "we are less evil than cr4pita, GAFA and Lord Ashcroft".

Does anyone else feel like they are in front of a firing squad and the gun has just jammed?

Yep or sat in the chair, waiting for them to throw the switch and there has been a power cut.

Don't worry, well get the power back on and try again tomorrow.

[BrilloPad]

They don't know what the individual is getting when C&A fleece them for 2k/day though. They see a contractor's invoice though, with VAT on it to make it look even worse.

Maybe we need some PR people. Our slogan "we are less evil than cr4pita, GAFA and Lord Ashcroft".

Does anyone else feel like they are in front of a firing squad and the gun has just jammed?

[LondonManc]

"inherent jealousy within the civil service of those high-earning specialists" - yet they are not bothered when Crapita and Accenture charge people out at 2k a day.

Looking at Loan Schemes, I have complained to HMRC about adverts for such. Faqqer complained to ASA. No-one seems interested in going after the promoters.

They don't know what the individual is getting when C&A fleece them for 2k/day though. They see a contractor's invoice though, with VAT on it to make it look even worse.

Including the colleagues they use to work with who have now have come back as contractors?

More likely they know how these things work because the public sector is worse than private companies in using them and zero hours contracts, to ensure they keep people off the books and keep their pension liabilities down.

The public sector isn't a patch on the financial sector for using contractors.

[SueEllen]

Looking at Loan Schemes, I have complained to HMRC about adverts for such. Faqqer complained to ASA. No-one seems interested in going after the promoters.

Maybe worth waiting a month or two - finding the adverts and getting a few people to complain to their MPs - in your cases you can point out there is no effective structure to deal with schemes that ultimately defraud the taxpayer.

The budget reminded me to complain about a large foreign company deliberately avoiding online VAT.

[SueEllen]

In terms of normal, all IR35 really did is turn commission and bonus structures into dividends, etc. Then they introduce the dividend tax allowances and them tighten them. It's a recognition that small high revenue companies exist and the inherent jealousy within the civil service of those high-earning specialists. The bigger issue is that it's the clients avoiding the business NICs, but they're harder targets, given many are backers of the government du jour, or at least have a team of tax experts to repel Hector and his horde.

Including the colleagues they use to work with who have now have come back as contractors?

More likely they know how these things work because the public sector is worse than private companies in using them and zero hours contracts, to ensure they keep people off the books and keep their pension liabilities down.

[BrilloPad]

In terms of normal, all IR35 really did is turn commission and bonus structures into dividends, etc. Then they introduce the dividend tax allowances and them tighten them. It's a recognition that small high revenue companies exist and the inherent jealousy within the civil service of those high-earning specialists. The bigger issue is that it's the clients avoiding the business NICs, but they're harder targets, given many are backers of the government du jour, or at least have a team of tax experts to repel Hector and his horde.


I totally agree with HMRC, though, on their drive to clamp down on the loan schemes, etc. Not a problem with that. However, if they're drawing a hard line under this, they need to assist, rather than vilify, the gullible ones who were previously talked into these schemes and go after the originators. Provide a longer-term payment plan rather than a cash grab - the money will have, in most cases, been spent. Asset seizure should be a last-ditch approach when the person has no intention of making good. Get half from the individual and half from the scheme originator.

"inherent jealousy within the civil service of those high-earning specialists" - yet they are not bothered when Crapita and Accenture charge people out at 2k a day.

Looking at Loan Schemes, I have complained to HMRC about adverts for such. Faqqer complained to ASA. No-one seems interested in going after the promoters.

[LondonManc]

I never joined a loan scheme after the retrospection of 2008. Anyone who has ever done any research over the last 5 years into loan schemes knows they are stuffed. One person in scheme enquiries asked for 80% tax on income.

Thing is, what is "normal"? I think HMRC think it is salary. No dividends. No income shifting.

In terms of normal, all IR35 really did is turn commission and bonus structures into dividends, etc. Then they introduce the dividend tax allowances and them tighten them. It's a recognition that small high revenue companies exist and the inherent jealousy within the civil service of those high-earning specialists. The bigger issue is that it's the clients avoiding the business NICs, but they're harder targets, given many are backers of the government du jour, or at least have a team of tax experts to repel Hector and his horde.


I totally agree with HMRC, though, on their drive to clamp down on the loan schemes, etc. Not a problem with that. However, if they're drawing a hard line under this, they need to assist, rather than vilify, the gullible ones who were previously talked into these schemes and go after the originators. Provide a longer-term payment plan rather than a cash grab - the money will have, in most cases, been spent. Asset seizure should be a last-ditch approach when the person has no intention of making good. Get half from the individual and half from the scheme originator.