Reply to: Next years salary?

[TestMangler]

Agreed. And these idiots considering quitting contracting already... jesus

I'd be surprised if anyone was considering quitting contracting over a couple of K of divi tax. Add to that the PSC consultation and expenses and whatever else the chancer of the exchequer dreams up in the next 18 months and planning an exit strategy is sensible. I predict the end of contracting as you know it in the life of this parliament, unless you manage to become big enough for overseas licencing fees. You might still be contracting but you'll be as close to PAYE as it's possible to be.

I would also predict that the FLC will come to fruition and be broadly similar to being IR35 caught and it will be heralded as the government creating a vehicle for our 'excellent flexible workforce' and 'helping the economy'.

[NotAllThere]

Totaly agree - anyone who thinks of quit contracting should do a salary calculator based on PAYE and do a comparison.

No. They should throw the towel in anyway, as they're clearly NCOTBAC. As well as being un-hoopy.

[philip@wellwoodhoyle]

I am not an accountant, hence the question on the accounting board. I'll wait until our esteemed accountants get up to speed.

It's not really a matter of getting up to speed. The detailed information just isn't there at the moment. The more I look at the "detail" in the Budget notes, the more uncertainty and queries I jot down. There's an awful lot happening at the moment, not just on last weeks Budget but also on changes made in the last few budgets coming into effect shortly, many of which may inter-act. One thing for sure is that there'll be no "one size fits all" approach like the current low salary:high dividend approach. Tax planning and optimisation has suddenly become a lot harder and more personalised depending upon the individual's circumstances.

[Wijay@WISAccountancy]

Agreed. And these idiots considering quitting contracting already... jesus

Totaly agree - anyone who thinks of quit contracting should do a salary calculator based on PAYE and do a comparison.

[WordIsBond]

YANCOTBAC

That wasn't nice and it wasn't fair, since he already fixed it.

But it WAS hilarious.

[ContrataxLtd]

Agreed. And these idiots considering quitting contracting already... jesus

You'll actually be potentially better off next year in terms of cash in your pocket if you continue to restrict income to the high rate threshold which is a bit of a bonus.

Downside is that you will have less retained in the company so overall worse off by a couple of grand which isn't the be all and end all and definitely not something to consider giving up contracting over.

Martin
Contratax Ltd

[northernladuk]

Personally I don't understand people spending time calculating things like this now. There will likely be two more budgets before 6 April 2016. Given how irresistible chancellors find it to tinker with things, I'd be surprised if they change nothing between now and then.

Agreed. And these idiots considering quitting contracting already... jesus

[ContrataxLtd]

Personally I don't understand people spending time calculating things like this now. There will likely be two more budgets before 6 April 2016. Given how irresistible chancellors find it to tinker with things, I'd be surprised if they change nothing between now and then.

Couldn't agree more, although I am playing with some spreadsheets this morning as I've a lot of clients asking about it. All advice given is started off by stating that things are likely to change between now and next tax year, possibly more than once.

[Maslins]

Personally I don't understand people spending time calculating things like this now. There will likely be two more budgets before 6 April 2016. Given how irresistible chancellors find it to tinker with things, I'd be surprised if they change nothing between now and then.

[Unix]

Quite right. I read the not worth paying dividends bit incorrectly

Drum roll....




YANCOTBAC

[Eirikur]

What if I convert to Islam, get me five wives, can I spread the load over them and I mean the salary/divvies here...

What's the tax threshold in IS? Would they need contractors and what is the going rate without losing my head?

[cosmos]

... (assuming YourCo is eligible for the Employment Allowance).

As someone whos "reading up" on it all and hasn't yet appointed an accountant or set up a Ltd company (all in due course), can you elaborate on this employment allowance, what it is and where I can read more about it.

Thanks

[WordIsBond]

Lot of questions still outstanding, whether personal allowance can be used against Dividends or just Dividend allowance allowed...

That's probably the biggest outstanding question of what has been definitely announced. If your only income is dividends, do you get £5K, £11K, or £16K tax-free? The first is probably untenable. But they could do the second. The statement didn't read like that, but it isn't clear enough to be certain.

[stek]

What if I convert to Islam, get me five wives, can I spread the load over them and I mean the salary/divvies here...

[Wijay@WISAccountancy]

Need to look at the detail report...

Lot of questions still outstanding, whether personal allowance can be used against Dividends or just Dividend allowance allowed...
Anyways time to clear inbox with client queries on Budget 2015.