Budget 2009 - What does it mean for contractors?

[Platypus]

Does this mean IR35 is being scrapped?!! Or am I just reading what I want to hear?

I think it means there will be new anti-avoidance measures, which are (let's face it) likely to hit dividends from "closed companies" or whatever jargon they apply to us these days.

[Nixon Williams]

Looks like the attack on Income Shifting is still on ice!

At the 2008 Pre-Budget Report action on income shifting was deferred and, consequently, no legislation will be brought forward in the Finance Bill. The Government will keep this issue under review.

[SallyAnne]

What is Capital Allowance?

It says "Business's Capital Alowance rate doubled to 40%".

[swamp]

Looks like a big fat nothing in the budget for us contractors. Which has to be seen as good news

[Nixon Williams]

What is Capital Allowance?

It says "Business's Capital Alowance rate doubled to 40%".

All this will do is accelerate the tax benefit so a larger company will receive the tax benefit earlier than it would have. There is no extra tax given away.

As a small company you will already have 100% allowances (upto £50K per annum), so it will not directly benefit you.

Alan

[LisaContractorUmbrella]

Looks like a big fat nothing in the budget for us contractors. Which has to be seen as good news

Agreed - have read as much as it is possible to read of the full report without needing frontal lobe surgery and it seems that contractors are being ignored this time........other than the tax increases obviously

[SallyAnne]

Agreed - have read as much as it is possible to read of the full report without needing frontal lobe surgery and it seems that contractors are being ignored this time........other than the tax increases obviously

Yay!!!!!

That BJ I gave Alistair Darling must have been worth it then

You're all welcome!!

[GardenGirl]

I'm no economist but it seems to me that this government needs some common sense. If you tax people 50% of their income plus NI they will earn less than the Government get in taxes. Who would accept a job at those terms? And thats not the only common sense lacking.

£2000 to scrap your car - ok but to buy a Car you need a Job and don't tell me your going to re-train us because this recession has hit those over 25 and in professional jobs.

If you really want to help the economy why don't you start be stopping all this cheap and rubbish Outsourcing going on as well as allowing cheaper labour in to our country, it is this that is killing employment levels, not just some dodgy bankers who failed GCSE Maths.

I have nothing against foreign workers but they should be paid the same as us however they should pay more NI because they need to make back payments for their use of the NHS etc...

Same for the unemployed when you return to work you have to pay a small amount more on your NI for however long you were off work as back payment for your benefits so its more of a loan.

I would also stop all expenses for MP's Full Stop, you wanted the job so live with the salary like the rest of us have to (well sort of !)

Ok Rant over!

[eliquant]

I love you Sally Anne

[AtW]

I love you Sally Anne

You'll need to have the power to set tax rates...