Official Contractor UK Budget Thread 2017

[SueEllen]

Aim to raise £4.8billion

[jamesbrown]

VAT threshold retained.

[SueEllen]

Indexation tax froze.

[SueEllen]

VAT threshold coming up now

[SueEllen]

VAT threshold retained.

Yep

Consultation on it though. Decrease in 2 years.

[SueEllen]

Talking about private sector jobs

[jamesbrown]

Business rates relief. CPI brought forward. Staircase tax relief.

[SueEllen]

Business rates being fiddle with

[TheCyclingProgrammer]

Increase to personal allowance *and* higher rate threshold? Unexpected.

With one hand giveth though...

Back of napkin calculation...with £8060 salary and dividends up to higher rate tax threshold:

2017/18:
£8060 salary tax free
£8,440 dividends tax free (remainder of PA plus £5k 0 rate band)
£28,500 @ 7.5% = £2,137.50 tax
Net takehome: £42,862.50

2018/19:
£8060 salary tax free
£5740 dividends tax free (remainder of PA plus £2k 0 rate band)
£32,550 @ 7.5% = £2441.50 tax
Net takehome: £44,358.50

Final tax efficient salary for 18/19 TBC though.

Net take home up due to the increase in the higher rate threshold, but an extra £300 tax overall.

[Platypus]

VAT threshold retained.

Dull. More clobber for everyone else?