Horrors of their first budget.

[gables]

Cereal isn't a good breakfast. Most is ultra processed sugar.

You want porridge!

Definitely the only cereal to consider, obviously made traditionally with water, salt and a dash of pepper :-)

[fiisch]

No increase to employee NI, income tax, or VAT. Claims working people will not see a change in their pay slips from this budget.

But employer's NI increased by 1.2%, to 15% from April 2025, and secondary threshold reduced to £9,100 to £5,000!!!! OUCH OUCH OUCH!

This is a big one for us who are outside.

So by my very rudimentary maths, currently employer's NI due on £12,570 salary is £478.86.

With this change, employer's NI due on the same salary would be £1135.50, an increase of £656.54, or an extra £1313.28 if one employs their wife to help with the books.

So painful, but not as bad as it first seems, especially as each employee will also get £164.16 corp tax relief on the extra NI per employee, so net around £500 per person, if indeed my maths is correct.

Far worse for people who are PAYE, as I strongly suspect these increases will inevitably be felt in individual's pay packets over the longer term with reduced rises/bonuses etc.

[DoctorStrangelove]

Really? You find the misfortunes of others amusing? I shouldn't be surprised, given the complete self-centred attitude I see in your other posts. You're like a petulant child, and a not very smart one at that.

WSS.

As dumb as a bucket of horse manure.

[escapeUK]

Cereal isn't a good breakfast. Most is ultra processed sugar.

You want porridge!

That's a choice. Nothing wrong with weetabix, shredded wheat. Although a bit more sugar, I quite like shreddies. Doesn't have to be frosties does it?

The trouble is scroungers have kids, get child benefit that they spend on cigs and tattoos, then expect tax payers to pay for the kids breakfast! lol.

[MillennialContractor]

Does the BADR rate apply to when the business completes the MVL and final distribution is made, or the tax year in which its claimed on your self assessment? Selfishly my current contract ends 30th March 2025 and I'd planned on MVL straight afterwards.

[willendure]

Slightly surprising but welcome that the freeze is not extended.

... yet.

[fiisch]

That's a choice. Nothing wrong with weetabix, shredded wheat. Although a bit more sugar, I quite like shreddies. Doesn't have to be frosties does it?

The trouble is scroungers have kids, get child benefit that they spend on cigs and tattoos, then expect tax payers to pay for the kids breakfast! lol.

A family member who has unfortunately gone through a horrible split has to survive on a measily £2,900 net monthly income from benefits, and a further £1,200 maintenance. By my reckoning, that's equivalent to salary of £65k - £70k/year. They're better off single than they were married ffs. System is completely broken, and the public purse is empty because of too many people taking out far more than they ever put in.

How can someone afford a box of Weetabix on such a small income....

[escapeUK]

So by my very rudimentary maths, currently employer's NI due on £12,570 salary is £478.86.

With this change, employer's NI due on the same salary would be £1135.50, an increase of £656.54, or an extra £1313.28 if one employs their wife to help with the books.

So painful, but not as bad as it first seems, especially as each employee will also get £164.16 corp tax relief on the extra NI per employee, so net around £500 per person, if indeed my maths is correct.

Far worse for people who are PAYE, as I strongly suspect these increases will inevitably be felt in individual's pay packets over the longer term with reduced rises/bonuses etc.

Thanks for doing the calculation.

[willendure]

Is that it? No big changes to ISAs or SIPPs? I am starting to think us genuine outside IR35 contractors have just dodged a bullet.

[jamesbrown]

Is that it? No big changes to ISAs or SIPPs? I am starting to think us genuine outside IR35 contractors have just dodged a bullet.

Yes, appears so. Nothing major on SIPPs or dividend tax. BADR rate up from 10% to 18%, it sounds like. Different story for those working through umbrellas or otherwise inside IR35 (which means umbrellas, unless you are nuts) as the ErNI increase is non-trivial, particularly for those in low incomes (secondary earnings threshold dropped almost in half).