Tax rises?

[jamesbrown]

I think there would need to be or there will be very obvious loopholes. However, without tax-free SalSac, umbrella 'employment' will become even less attractive (is that possible?).

With budgets like the one being mooted, where they dick around with all manner of taxes, there will be loopholes and issues all over the place. It's often the smallest measures that end up being politically disastrous and the Treasury simply doesn't have the skillset to avoid them. That said, employer pension contributions more generally (non SS arrangements) are a rather different beast than SS arrangements and it isn't too surprising that the latter are being targeted. If they were to do something on employer contributions more generally, it might be to reduce the amount eligible for CT relief but, really, this is just a tax deferred whereas SS arrangements reduce your taxable income as an employee.

[jamesbrown]

Oh, and the problem with umbrella employment is that it has always been forced. It's just an odd outcome of our labyrinthine employment and tax laws and has zero attractiveness. As an umbrella employee, you are really asking to be kicked, but there is rarely much choice.

[Protagoras]

With budgets like the one being mooted, where they dick around with all manner of taxes, there will be loopholes and issues all over the place.

And also great unfairness further promoting the divide between older people - many of whom would have had access to defined-benefit pensions, salary sacrifice, the option to work as a contractor etc - and a younger cohort deprived of these things by government policy and often forced into less secure 'employment' models.

I heard this week of a financial planning firm that now undertakes pension planning for younger people with the assumption of no state pension! That's scary.

[milanbenes]

I heard this week of a financial planning firm that now undertakes pension planning for younger people with the assumption of no state pension! That's scary.

I guess you didn't get the memo 20 years ago.

Milan.

[milanbenes]

Oh, and the problem with umbrella employment is that it has always been forced. It's just an odd outcome of our labyrinthine employment and tax laws and has zero attractiveness. As an umbrella employee, you are really asking to be kicked, but there is rarely much choice.

interesting thing is, if you do a remote UK IR35 only contract from the mainland, the ir35 doesn't apply

which is cool

Milan.

[jamesbrown]

interesting thing is, if you do a remote UK IR35 only contract from the mainland, the ir35 doesn't apply

which is cool

Milan.

That really depends on whether you are UK tax resident. In any case, many otherwise inside IR35 contracts avoid IR35 by requiring umbrella employment, and no UK umbrella or agent would touch you. Plus you have to suffer the indignity of living over there, which is an indignity second only to living in the north of England. *Shudder*.

[milanbenes]

That really depends on whether you are UK tax resident.

..... yes obviously this is not respective to UK Tax Residency


In any case, many otherwise inside IR35 contracts avoid IR35 by requiring umbrella employment, and no UK umbrella or agent would touch you.

...... that's not true


Plus you have to suffer the indignity of living over there, which is an indignity second only to living in the north of England. *Shudder*.

...... ha ha that's funny


lol

Milan.

[milanbenes]

anyway,

we are digressing

let's get back to these much needed UK Tax rises

you're all in this together and everybody needs to pull their weight

Milan.

[jamesbrown]

That really depends on whether you are UK tax resident.

..... yes obviously this is not respective to UK Tax Residency


In any case, many otherwise inside IR35 contracts avoid IR35 by requiring umbrella employment, and no UK umbrella or agent would touch you.

...... that's not true


Plus you have to suffer the indignity of living over there, which is an indignity second only to living in the north of England. *Shudder*.

...... ha ha that's funny


lol

Milan.

The quote button is the little thing with quotation marks .

The obvious point is that UK tax residents pay UK tax on their worldwide income and ITEPA Ch. 8 and 10 are part of UK tax law, so UK residents are subject to them, regardless of where the work is performed. Non-UK residents are obviously subject to non-UK taxes, which tend to be rather punitive for modestly high earners (which is why some people over there can only afford a bottom of the range Porche), plus you probably won't get back the ErNI paid by a UK umbrella, even if you have an NT = No Tax tax code. For this and other reasons, it's absolutely true that UK umbrellas and UK agents have no interest in engaging non-UK residents, regardless of whatever anecdote you may have.

[jamesbrown]

anyway,

we are digressing

let's get back to these much needed UK Tax rises

you're all in this together and everybody needs to pull their weight

Milan.

Next up, we have speculation about dividend tax rates going up, especially the basic rate, from 8.75% to, perhaps, 16.5% or higher.