Tomorrow's Budget... good or bad for contractors using Ltd companies?

[MarillionFan]

Really? Those on low incomes are much better off with free doctors and dental care and benefits than 50 years ago.

Plus they were talking about reducing how much tax poor people pay, since it doesn't raise much anyway.

Plus us contractors are a small minority, and as such could catch a break if they want to encourage small companies.

Wash your mouth out young man! We may be a small a minority in terms of people but we make up for in terms of taxes, income and ego!

[fullyautomatix]

How about this for an idea?

Instead of wildly guessing, why not wait 16 hrs and find out?

I don't know, I much prefer speculating these things before the actual event.

Here is my take, there will be mucho tax rises and plenty of public services cut.

I doubt they would cut the inflated salaries of public sector employees, there would be strikes all through the year.

I doubt they will cut benefits, there will be plenty of riots and crime.

I doubt they will cut gold plated pensions, that would be unpopular.

I reckon, they will tax the middle classes as much as they can , because, well middle classes generally take an arse kicking with a smile.

[Peoplesoft bloke]

Really? Those on low incomes are much better off with free doctors and dental care and benefits than 50 years ago.

Plus they were talking about reducing how much tax poor people pay, since it doesn't raise much anyway.

Plus us contractors are a small minority, and as such could catch a break if they want to encourage small companies.

Good points, well made, but without wishing to appear excessively pedantic, the NHS wasn't introduced via a budget and trying to compare how "well off" anyone is comapred with 50 years ago isn't very realistic. What is certainly clear is that governments of all persuasions have gradually increased both the actual amount and the proportion of tax taken as a percentage of GDP since the second world war.

It looks as if there will be a big rise in personal allowances - good news, but any benefits will probably be lost by increasing tax on theoretically discretionary spending - the Tories did this under Thatcher and Major by increasing VAT (rate and scope), the fuel price escalator, and Major did it by inventing a whole load of new taxes like insurance premium tax, airport departure tax.