Budget 2011

[cailin maith]

If he's confirmed he is goinging to consult the merging of Income Tax and NI Contributions, and IR35 was brought in to combat NI Avoidence I doubt he will come back to it later on in the budget

He may just not speak about it and it'll be in a Budget Note somewhere.

[VectraMan]

So how would this work in reality? If my companies financial year from October to September, would this years be calculated at 21% because my tax year started before the 1st April 2011?

You end up doing a pro-rata calculation based on the number of days at each rate, so rougly half your profits at 21%,and half at 20%.

How much do we need CT to be reduced to to offset having NI put on dividends and be no worse off?

[SimonMac]

You end up doing a pro-rata calculation based on the number of days at each rate, so rougly half your profits at 21%,and half at 20%.

How much do we need CT to be reduced to to offset having NI put on dividends and be no worse off?

I think I will keep putting the full 21% aside each month then

[PAH]

How much do we need CT to be reduced to to offset having NI put on dividends and be no worse off?

They're not putting NI (as part of the tax merger) on divies are they?

Don't divies come under CT and you only pay more if your personal income for the tax year goes into the next threshold, so hopefully nothing there for us to worry about, maybe even celebrate if we're getting lower CT rates.

[VectraMan]

Fuel duty cut 1p from 6pm tonight.

[Pondlife]

Was that it?

Will have to read the notes to see what it really means.

By read I mean wait until someone publishes a decent review.

By decent review I mean someone posts on here how it affects contractors.

By contractors I mean ME

[tokabi]

from the budget notes

2.203 IR35 – Following the publication of the OTS review of small business tax, the
Government commits to making clear improvements in the way IR35 is administered. These
improvements will include setting up a dedicated helpline staffed by specialists, publishing
Budget 2011 71
guidance on those types of cases HMRC view as outside the scope of IR35, targeting compliance
activity by restricting reviews to high risk cases and setting up an IR35 Forum which will monitor
HMRC’s new approach. The Government has decided to retain IR35, as abolition would put
substantial revenue at risk.

[FarmerPalmer]

1.78 Following publication of the OTS review of small business tax,16 the Government
commits to making clear improvements in the way IR35 is administered (see Chapter
2 for detail).17 The Government has decided to retain IR35 as abolition would put substantial
revenue at risk.


2.203 IR35 – Following the publication of the OTS review of small business tax, the
Government commits to making clear improvements in the way IR35 is administered. These
improvements will include setting up a dedicated helpline staffed by specialists, publishing
guidance on those types of cases HMRC view as outside the scope of IR35, targeting compliance
activity by restricting reviews to high risk cases and setting up an IR35 Forum which will monitor
HMRC’s new approach. The Government has decided to retain IR35, as abolition would put
substantial revenue at risk.

[d000hg]

• 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?

[SimonMac]

They're not putting NI (as part of the tax merger) on divies are they?

Don't divies come under CT and you only pay more if your personal income for the tax year goes into the next threshold, so hopefully nothing there for us to worry about, maybe even celebrate if we're getting lower CT rates.

Very interesting that when he mentioned merging tax and NI - he said it would not be expanded to other income streams.

I take that as no they are not putting it on Divi's, but I could be wrong!