Horrors of their first budget.

[youngguy]

Don't quote me on it but I believe the answer is yes and yes. I currently salary sacrifice a significant portion of my inside IR35 income and make occasional one-off (10k ish) director's pension contributions from a side hustle I still have for both me and the wife, which is entirely deductable. I have been told I can make up past 3 years from either source, although some of those years will be at the old £40k limit.

edit: if you're asking can 2x companies contribute 60k each then no, £60k is a personal limit.

Thanks, I've asked the accountant so will update here on their view. My planned approach is the same as yours - hit the 60k (or 40k from previous yrs) from a combination of brolly salary sacrifice and the rest direct from the ltd

[vetran]

How on earth does it save the Government 'a ton of money' when the Government itself states it is borrowing tens of billions pounds more?! And both Stasi and Reeves have said it's a Government to grow the economy.

As with all increases, the extra is only a peak projection not actual extra. Why, because people who a due to pay the extra mitigate it by either not taking on extra staff, laying off some existing staff or just closing their business altogether.

Plenty of business owners will think stuff it I will close before I go bankrupt and take BADR & CGT rates while they are still low.

[Snooky]

5, No, you will not admit you were wrong. You's just slope off into a corner or hope no one raised the point you were wrong '5 years ago' and probably revert to your favourite saying, whataboutery?

You're completely mistaken about that. I'm very open minded about pretty much everything, including politics, and part of that is that you sometimes have to accept that you've been proven wrong about something and be big enough to admit it. Otherwise you're not really open minded. I've done it plenty of times in the past and am quite willing to do it in future. It's kind of how a civilised adult should behave, though not many do.

[dsc]

How on earth does it save the Government 'a ton of money' when the Government itself states it is borrowing tens of billions pounds more?! And both Stasi and Reeves have said it's a Government to grow the economy.[...]

If you keep tax brackets at the old levels but people earn more (which apparently they do), they pay more tax automatically, so that's a tax increase without increases taxes directly. Same goes for NI, just pushed towards employers. On paper this looks like increasing gov tax "intake" but the extra NI might cause issues like less employment, so not sure how that works out.

As for growing economy...not sure where the growing is meant to happen, but the budget seems to make sense from a gov point of view (ie. more money).

[sadkingbilly]

Plenty of business owners will think stuff it I will close before I go bankrupt and take BADR & CGT rates while they are still low.

no they won't.

[Andy2022]

Same goes for NI, just pushed towards employers. On paper this looks like increasing gov tax "intake" but the extra NI might cause issues like less employment, so not sure how that works out.

Changes to NI are likely to encourage employers to have one person on a 30 hour / week contract rather than 2 on a 15 hour week contract

Which in theory reduces employment but as we’re practically at full employment then it actually makes workers available for other jobs

Increasing the cost of employment should also drive investment in productivity - automation, training etc which would be good for the economy too as too many firms rely on low paid workers rather than investing

[dsc]

Changes to NI are likely to encourage employers to have one person on a 30 hour / week contract rather than 2 on a 15 hour week contract

Which in theory reduces employment but as we’re practically at full employment then it actually makes workers available for other jobs

Increasing the cost of employment should also drive investment in productivity - automation, training etc which would be good for the economy too as too many firms rely on low paid workers rather than investing

Well it might work for that group of employers, the question is how many of those we have and how many have say 5 full time employees, wanted to hire 1-2 more, but now the extra NI will eat into the budget for the new hires? Similar with automation, the more of it you introduce, the less people you need, so not sure that's such a positive thing from employment point of view (of course if you have no available people on the market, it's a good thing, so it depends).

What is however definite, is that additional NI, wherever it comes from, is a source of extra money for the government.

[vetran]

Well it might work for that group of employers, the question is how many of those we have and how many have say 5 full time employees, wanted to hire 1-2 more, but now the extra NI will eat into the budget for the new hires? Similar with automation, the more of it you introduce, the less people you need, so not sure that's such a positive thing from employment point of view (of course if you have no available people on the market, it's a good thing, so it depends).

What is however definite, is that additional NI, wherever it comes from, is a source of extra money for the government.

until of course it falls because they killed the goldengoose

[Gibbon]

Well it might work for that group of employers, the question is how many of those we have and how many have say 5 full time employees, wanted to hire 1-2 more, but now the extra NI will eat into the budget for the new hires? Similar with automation, the more of it you introduce, the less people you need, so not sure that's such a positive thing from employment point of view (of course if you have no available people on the market, it's a good thing, so it depends).

What is however definite, is that additional NI, wherever it comes from, is a source of extra money for the government.

That has been a redundant view since the Luddites, automation increases wealth and has done for the last 300 years, it creates and/or allows new jobs. We were told in the 70's to prepare for loads of leisure time when we became adults as Computers would be doing all the work .

The Railways really piss me me off because they are ripe for more automation, instead of guards in the back cab watching porn (yes I've seen them).

[vetran]

That has been a redundant view since the Luddites, automation increases wealth and has done for the last 300 years, it creates and/or allows new jobs. We were told in the 70's to prepare for loads of leisure time when we became adults as Computers would be doing all the work .

The Railways really piss me me off because they are ripe for more automation, instead of guards in the back cab watching porn (yes I've seen them).

The Luddites were forced to work in factories or starve hardly a compelling argument pro automation for most workers.

Who does automation create wealth for and in which country do the taxes and jobs appear? In my opinion it will be countries with low worker cost and where the tax system can be exploited.

Having seen both automation and offshoring decimate UK manufacturing, be very careful what you wish for.

We need to actively encourage developing it in the UK.

Plenty of mining towns are ghost towns even now. We need to retrain.

Agree that railways need automating imagine doing twice the speed limit regularly when driving a passenger train.