Reply to: Spring Budget 2017

[TheCyclingProgrammer]

But then, you and I probably aren't the ones on Twitter raving about an attack on small business.

That'll be me then.

[Lost It]

I think I've said before, I'm not averse to paying any taxes due, after all I'm alive now because taxes paid for my cancer operation.

What I am averse to is being an unpaid tax collector for the gov (VAT) and then being told that I'm a tax dodger when I'm actually anything but. Any taxes I owe are paid, usually before they are due. If I'm not due to pay a tax bill because of the rules, I don't pay it....

But linking us all with the major tax dodging major businesses? Nope. Not happy.
That and they have clearly lied again. No change there then.

[Lost It]

I read somewhere they plan on recouping £440m from public sector contractors. I'm just thinking that'll cover some of the money the government has wasted on failed projects?!

Or cancel Trident and have bundles left over...

[jamesbrown]

Oh, there's a reason.

If it settles down nicely between now and the Autumn, they got away with it. If it totally blows up in their faces, they can heroically find another solution, roll it back to just 0.5% to replace Class 2, and announce it all in the Autumn. Then, they can announce with great fanfare that "we've listened."

I think any listening in the Autumn Budget is going to be directed towards the ErNI side of the coin, rather than EeNI. Afterall, that's the major discrepancy now, not the EeNI.

[WordIsBond]

Its one reason why I went WTF when the NI changes were announced but won't be implemented until April 18. There wasn't even any reason to announce them yesterday just wait for the report to appear and announce them as part of that review...

Oh, there's a reason.

If it settles down nicely between now and the Autumn, they got away with it. If it totally blows up in their faces, they can heroically find another solution, roll it back to just 0.5% to replace Class 2, and announce it all in the Autumn. Then, they can announce with great fanfare that "we've listened."

[WordIsBond]

Perhaps...but I'd far prefer he rant and rave whilst doing something trivial than say lots of fluffy nice things whilst screwing us.

Public sector IR35 - looking like it'll be devastating, though admittedly more due to uncertainty and risk averse-ness rather than anything else.
"Dividend tax" last year - a couple of grand extra personal tax for most.
FRS changes - perhaps a grand or two loss for many.

In comparison the changes announced yesterday are utterly trivial.

I agree. But then, you and I probably aren't the ones on Twitter raving about an attack on small business.

Yesterday was the first time the sole trader with a moderate income was told by government that he's a problem and a tax avoider, and so has to pay more tax.

[youngguy]

Personally, I was (and am) more worried about the Autumn Budget. The major changes were always more likely to occur in the Autumn, once Taylor has reported and the PS changes have bedded in; HMT were also playing down the Spring Budget as a time for any major tax or spending decisions. Hate to be mongering doom, but...

Taylor is a big worry if the direction of travel (self employed dodge tax) continues.....

One can only hope IPSE can exert some influence - and I am not being sarcastic

[SueEllen]

Its one reason why I went WTF when the NI changes were announced but won't be implemented until April 18. There wasn't even any reason to announce them yesterday just wait for the report to appear and announce them as part of that review...

That would be too sensible.

[jamesbrown]

Its one reason why I went WTF when the NI changes were announced but won't be implemented until April 18. There wasn't even any reason to announce them yesterday just wait for the report to appear and announce them as part of that review...

Yes, totally cack-handed. I thought it would be an increase in C4 NI plus dividend tax on April 6 or nothing.

Spreadtulip Phil

[eek]

Personally, I was (and am) more worried about the Autumn Budget. The major changes were always more likely to occur in the Autumn, once Taylor has reported and the PS changes have bedded in; HMT were also playing down the Spring Budget as a time for any major tax or spending decisions. Hate to be mongering doom, but...

Its one reason why I went WTF when the NI changes were announced but won't be implemented until April 18. There wasn't even any reason to announce them yesterday just wait for the report to appear and announce them as part of that review...

[jamesbrown]

the changes announced yesterday will make naff all difference IMHO.

Personally, I was (and am) more worried about the Autumn Budget. The major changes were always more likely to occur in the Autumn, once Taylor has reported and the PS changes have bedded in; HMT were also playing down the Spring Budget as a time for any major tax or spending decisions. Hate to be mongering doom, but...

[Fred Bloggs]

What options are there - assuming you don't want to become a full time employee? From my limited understanding, we're no better off headquartering in Dublin as we're taxed at the same rate when bringing our earnings back into the country. We could move to another country, but the commuting back to clients would be unattractive.

Widen your horizons young grasshopper. There's a whole wide world out there just waiting for you.

[PartOfTheUnion]

Dividend tax will affect all shareholders, regardless of company size.

I was referring to the public sector rules, not the budget.

[teapot418]

Why should a small, family-run company's shareholders pay more tax because they work to earn that company's profits than the shareholders of larger companies who send employees out earn their profits while paying those employees much less than the company's fees for their work? And then those large companies set up very much more efficient ways of reducing their corporation tax and other dues than we ever could. 'Fairness' depends on your starting assumption - are we to be compared with 'other' employees or other companies?

Dividend tax will affect all shareholders, regardless of company size.

[PartOfTheUnion]

I don't see it as an attack on small businesses. It is part of an ongoing attack, started with IR35 in 2000, on tax motivated incorporation. There is a very reasonable question, why should a contractor be able to pay very little tax, compared to an employed person?

Why should a small, family-run company's shareholders pay more tax because they work to earn that company's profits than the shareholders of larger companies who send employees out earn their profits while paying those employees much less than the company's fees for their work? And then those large companies set up very much more efficient ways of reducing their corporation tax and other dues than we ever could. 'Fairness' depends on your starting assumption - are we to be compared with 'other' employees or other companies?