Health and social care tax

[_V_]

And for all employees tis 2.5% paycut, they'll cut the employers NI from any planned annual pay rise - and interest rates rising next year!

Pay cut whilst RPI in the UK is close to 4%.

Tory scum.

[_V_]

Funny thing is, all this extra money will be squandered to new limited companies setup by Tory donors, MP's, friends and spouses of cabinet ministers.

look out for lots of new Health and Social Care limited companies on Companies House spring up and win contracts to kill old people as cheaply as possible...

[SueEllen]

Funny thing is, all this extra money will be squandered to new limited companies setup by Tory donors, MP's, friends and spouses of cabinet ministers.

look out for lots of new Health and Social Care limited companies on Companies House spring up and win contracts to kill old people as cheaply as possible...

Too late - lots of venture capitalists now own home care homes and social care companies.....

[SueEllen]

Good this press briefing is boring to listen to.

If I need something to help me fall asleep I will play them back...

[hugebrain]

And for all employees tis 2.5% paycut, they'll cut the employers NI from any planned annual pay rise - and interest rates rising next year!

Isn’t it more like 5%?

If someone currently earns 200,000 and receives 100,000, after employers and employees NI they will receive 95,000. A five percent drop.

Doubly bad for renters since housing costs will go up as people rush to become landlords/holiday home owners as they will be protected from this (and most other) tax.

I could be wrong of course. Maybe I should ask in the accountancy section.

[jamesbrown]

Isn’t it more like 5%?

If someone currently earns 200,000 and receives 100,000, after employers and employees NI they will receive 95,000. A five percent drop.

Doubly bad for renters since housing costs will go up as people rush to become landlords/holiday home owners as they will be protected from this (and most other) tax.

I could be wrong of course. Maybe I should ask in the accountancy section.

If someone currently earns 200k and receives 100k after all other taxes and then spluffs 50k on IT training from smallbrain ltd, and the additional NI is 5k, then isn't it 10% of what's left?

In other words, yes, it is with respect to the amount that is subject to NICs, not some other fantasy unicorn amount.

[Fraidycat]

Isn’t it more like 5%?

If someone currently earns 200,000 and receives 100,000, after employers and employees NI they will receive 95,000. A five percent drop.

Doubly bad for renters since housing costs will go up as people rush to become landlords/holiday home owners as they will be protected from this (and most other) tax.

I could be wrong of course. Maybe I should ask in the accountancy section.

According to online calculators:

Inside contractor, 200K a year was taking home around 104K, now going to be taking home around 100K (effective tax rate 50%)

Inside contractor, 150K a year was taking home 81K, now going to be taking home around 78K (effective tax rate 48%)

Inside contractor, 100K a year was taking home 60K, now going to be taking home around 58K (effective tax rate 42%)

[hugebrain]

If someone currently earns 200k and receives 100k after all other taxes and then spluffs 50k on IT training from smallbrain ltd, and the additional NI is 5k, then isn't it 10% of what's left?

In other words, yes, it is with respect to the amount that is subject to NICs, not some other fantasy unicorn amount.

My training courses are much more reasonable than that (and according to one student, “I learned more on this course than in any other week in my life”).

But you make a good point, accommodation costs have indeed doubled for the IR35 caught, so the tax rise is effectively more than I said.

As Fraidycat just posted, the online calculators say that I’m right for once!

[_V_]

Question, is this tax only applicable to employee and employer NI?

Are there any other tax rises, such as related to dividend income, income from rental property?

Any changes to Capital Gains tax?

So, the person living on rental income, dividends from companies, selling shares, crypto, property or other assets, pays not £1 more than they did before?

[jamesbrown]

Question, is this tax only applicable to employee and employer NI?

Are there any other tax rises, such as related to dividend income, income from rental property?

Any changes to Capital Gains tax?

So, the person living on rental income, dividends from companies, selling shares, crypto, property or other assets, pays not £1 more than they did before?

Dividend tax is increasing by 1.25% because it's only fair™.