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Coproration Tax To Rise to 25%

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    #21
    Originally posted by Whorty View Post
    Why are contractors not doing this already? Money left in the company bank account is earning diddly squat interest, much better to put it into a pension - you will get a better return, and you save corp tax.
    I never put money into a pension during my contracting years. I just didn't want to have to wait 20 years to get my hands on the funds, because I prefer to have control over it myself and invest it sooner. In my mind it was better to wait until my retirement from contracting and then liquidate and claim ER. Then I would have the funds earlier and could invest them wherever and whenever I wanted.

    Fortunately "Moneyboxing", though on HMRC's radar, was never outlawed or taxed out of existence.

    However, I do think it's generally a good idea to make use of pension allowances and in hindsight it would have been good for me to chuck in £40k a year into a pension. Would have made a nice side investment with another income stream.

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      #22
      AFAIK few years ago HMRC disallowed cash reserves being claimed as ER, and now ER is lower and might be nuked completely this autumn. The deal is getting worse all the time...

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        #23
        Originally posted by Great Parks View Post

        Hardly. How many of those you've listed are going to be incorporated?
        Loads of them. If you have employees, you virtually have to be.
        Originally posted by MaryPoppins
        I'd still not breastfeed a nazi
        Originally posted by vetran
        Urine is quite nourishing

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          #24
          Originally posted by AtW View Post
          AFAIK few years ago HMRC disallowed cash reserves being claimed as ER, and now ER is lower and might be nuked completely this autumn. The deal is getting worse all the time...
          It is getting worse for sure.

          But cash reserves were never disallowed - unless I'm misunderstanding. It was often discussed, especially around the 2016 budget when the 2 year anti-phoenix rule was brought in. But it wasn't acted on any further than to stop people repeating the liquidation/ER procedure every few years.

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            #25
            Originally posted by ChimpMaster View Post
            But cash reserves were never disallowed - unless I'm misunderstanding.
            I believe any (serious) cash left in the company has to be treated as dividend-able tax wise rather than capital gains (ER) - certainly on a sale of the company, maybe they still allowed that for liquidation.

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              #26
              Come to think of it - Tory Scum robbed Pension Funds with that corp tax increase, very nice in the environment of fook all interest needed to pay pensioners.

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