With the top rate going to 43k and lower basic rate, and also higher small biz tax is Gordo trying to make being inside Ir35 less of an issue?
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Yep.
Good news. You won't be much worse off paying IR35.
Bad news. You won't be any better of being outside IR35
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But doesnt the £43k not kick in till April 2009, over 2 years away ?Originally posted by DiestlComment
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as does the 22% corp tax, so you're still better offoutside till then.
also we all know that just after Inc Tax cut comes a hike in NI...Cenedl heb iaith, cenedl heb galon
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Eh? Higher rate allowance from April 2007: £39,825.Originally posted by Diestl
Higher rate allowance from April 2009: £43,000
Rate of increase 3.9% pa. That's below inflation. Gordon Brown is a conman who uses two year's worth of inflation to pretend he's actually increased allowances in real terms. He hasn't.
Don't fall for the hype.
Still, I like scrapping the 10% band. Simplification is good.Comment
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well it is obvious is not it - make it less of a benefit to run a ltd co becuase lets face it actually regulating IR35 must be a nightmare for HMRC
they almost seem to be saying sod IR35 but make it less attractive to run a LTD co over an umbrella (sorry profesional employment services provider)
overall they get more money for less effort.......
it does sort of clarify the situation for contractors in that you now have 2 ways to work (well 3 if you include PAYE with the agency).
i guess it is going to come down to personal choice as in how much do you really want that extra 5/10/15% of your invoice value.
how much effort are you willing to put in?Comment
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does this mean we are allowed to rape the current system until 2009?
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fill yer boots son!Comment
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Think i'll be increasing my rates to reflect the changes put forward by the budget come my next contract renewal in May....
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Did you not see that the NI upper band is being moved to 43k as well - i.e. more NI to be paid?
Gives with one hand, takes away with the otherComment
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