Budget 2011

[portseven]

What you don't know is how many people gave in and went with umbrellas instead, went permie, or were just scared away from contracting in the first place.

Or all the people who went to other tax planing vehicles, and thus we have BN66, EBT, etc. Thus more revenue not landing in the Treasurys coffers.

[TheFaQQer]

Nice to see EBT get a specific mention in the speech today, though.

[AtW]

• Entrepreneur relief is doubled to £10m.
• From April, small firms' R&D budget will go up 200 per cent this year and next.

I don't know what either of those things are. Anyone?

I do

Bad things in budget:

1) annual investment (into hardware not city casino stylee) cut to £25k in 2012 - in 2011 it should already be cut to £50k I think - ffs we buy lots of servers ffs!
2) fuel duty is a CON - they levy as much from oil companies, so expect to pay more at the pump, North Sea investment becomes even less desireable - he continues Brown's route of fooking up UK in terms of having secure supply of energy nearby. This is basically same as increasing Employer NIC rather than Employee - shifting costs, only this time it is direct tax on product so it will be passed on
3) enterprise zones - boll0x as it is for companies that move into them (ie - invitation for fakers), most certainly business rates discounts (we pay plenty!) won't apply to existing companies
4) fuel "stabiliser" - what a load of con - it will still go up but not higher than inflation, gee thanks!

Ducking NI+IT merge until end was expected, I can't see them doing it just before new elections though.

---

So in conclusion - b0llox budget, even though I welcome increase in Entrepreneur relief to £10 mln - much more sensible figure than Liebors £1 mln, but still not as good as long term capital gains relief.

[d000hg]

I do

Well you should do... what's the R&D thing mentioned?

[AtW]

Well you should do... what's the R&D thing mentioned?

HM Revenue & Customs: Research and Development (R&D) Relief for Corporation Tax

[Doggy Styles]

Or all the people who went to other tax planing vehicles, and thus we have BN66, EBT, etc. Thus more revenue not landing in the Treasurys coffers.

Or the people who simply pay up IR35. I've bumped into some of them.

[munna]

"High Risk"

The approach also includes the tax authority improving how it targets compliance activity on IR35, resulting in a commitment that IR35 reviews be restricted to “high risk” cases only.

What does "high risk" mean? Are they going to be profiling? If so using what criteria?

[cojak]

What does "high risk" mean? Are they going to be profiling? If so using what criteria?

Your guess is as good as ours.

[d000hg]

HM Revenue & Customs: Research and Development (R&D) Relief for Corporation Tax

I think we discussed this a bit before. You claim this already, right? Maybe I should start a thread on it if you're happy to field questions?

[AtW]

You claim this already, right? Maybe I should start a thread on it if you're happy to field questions?

Yes, we put a very modest claim for the last FY year.

I'd say it is very hard to prove you qualify - rules are pretty strict giving plenty of scope to reject claims. It all depends on individual circumstances and I'd recommend using accountant to advise you rather than public forum.

In my final analysis this whole R&D scheme was created for fairly large companies that should not even need such schemes.