Reply to: Higher Corporation Tax

[Denny]

well the cock isnt getting any extra money from me. Im making sure my operating costs are going up!!

Time to change the mobile phone to the companies name
Time to start renting 1 room in my mothers house for an office
Time to get some compliments slips printed
Time to get some headed paper printed
Time to get a new laptop for site work

Did i miss anything...?

I'm going to attend some lavish conferences in my field, possibly abroad - giving me best practice highlights and allow me to network at the same time. I can also use it for holidaying for a couple of days. I was going to do this anyway, but now I've got the perfect excuse.

This should cost around £2-3K a year.

[mictech]

Right, looks like we're gonna have to bite the bullet here. What say we all club together for a slice of political corruption?

Great idea but it won't work.

Any volunteers to schmooze Gordo first of all? We could start with a night at the Odeon and a slice of pizza, and build up slowly.

You put him a room with just one of use and he will be beaten to a pulp. A couple hundred and we could sell him as a kebab when we finished with him.

Perhaps the ladies of the forum could offer their services!?

Before you can say 'another scotch Gordon', IR35 will be a thing of the past

We could have them whip him till he's a bloody mess and then pour the scotch over him to inflame the cuts.

[Burdock]

Yes, but it's not your average IT contractor that invites Gordo to expensive idealic holiday destinations in exotic private paradises, offers NL huge donations to keep him in the custom to which he has become very much accustomed and has no intention of giving up, and probably posts lavish cases of expensive champagne and huge semi-detached house size Teddy Bears for his kids at Christmas on him, is it.

What chance have little ol' you, in your 'I'm a £40 an hour IT geek' T shirt got to offer our thrifty thefty Scot compared to some swashbuckling offhore tax haven jet setting multi-millionaire in his Saville Row suits heading up a huge multi-national? A tin of All Butter Shortbread and a bottle of blended Whiskey?

Be realistic - please !

Right, looks like we're gonna have to bite the bullet here. What say we all club together for a slice of political corruption?

Any volunteers to schmooze Gordo first of all? We could start with a night at the Odeon and a slice of pizza, and build up slowly. Perhaps the ladies of the forum could offer their services!?

Before you can say 'another scotch Gordon', IR35 will be a thing of the past

[Maxamus]

well, from now on, all the software i buy, im making sure they are all BUSINESS Editions and im going to claim the full amount back

PS. How worse off are we Ltd Companies going to be under these new proposed changes?

[Bluebird]

I was thinking of buying a camcorder in order to make some "promotional" videos - any chance this is a bona fide expense ?

[Jog On]

well the cock isnt getting any extra money from me. Im making sure my operating costs are going up!!

Time to change the mobile phone to the companies name
Time to start renting 1 room in my mothers house for an office
Time to get some compliments slips printed
Time to get some headed paper printed
Time to get a new laptop for site work

Did i miss anything...?

Yeah an electric scooter and a Toyota Prius "fleet department" - got to be green of course!

Add to that business trips to places like the Cayman islands to look for investment properties and possibly new headquarters (by boat of course).

[morphman]

welll, its just more encouragement to close your business down every few years, and get it all back as taper releif and CGT allowances.
plus, you can re-assign shares of your new business when it is formed to your partner/family to suit your needs in order to maximise dividend amounts using both your tax brackets lol.

[Diestl]

I welcome the small biz tax rise, IF it is a substitution for IR35.

[thunderlizard]

I must be the only person who thinks that corporation tax thing made sense. Having corp. tax hop from 19% to 30% once your turnover hit £350000 was just bizzare. 22% to 28% is a lot smoother!

[VectraMan]

Your ordinary man in the street probably thinks income tax is now 20% (or will be), but of course that's not all the tax on your income as it doesn't count NI. It seems to me that NI is just a big scam to make income tax look lower than it really is.

Maybe olde Golden Brown thinks that if we see income tax being lower than corporation tax we'll all give up on the idea of incorporating as it isn't worth it right? But the truth is we're all still much better off paying low salary/dividends because of NI. I bet more than a few contractors will fall for that.

[Maxamus]

well the cock isnt getting any extra money from me. Im making sure my operating costs are going up!!

Time to change the mobile phone to the companies name
Time to start renting 1 room in my mothers house for an office
Time to get some compliments slips printed
Time to get some headed paper printed
Time to get a new laptop for site work

Did i miss anything...?

[Flat Eric]

So...in summary...cock!

I do love a well reasoned analysis...

I'm not complaining. I think Gordo can go and stick his head up a Glaswegians arse and yodel Flower Of Scotland ....

[NewBoy]

Gordo is such a cock!


Extract from that fat ones speech...

..."But I do need to act to deal with individuals artificially incorporating as small companies to avoid paying their due share of tax, a practise if left unaddressed would cost the rest of the taxpaying population billions of pounds"...


This is such a con...if he wanted to stop this practice, then he should raise it much more that this...as it is, this won't stop anyone, it will just make him a few more quid!! Its the same as speed camera's...they don't want to stop people speeding, otherwise they would reduce the amount of points before a ban (after all, no-one can complain because there is no excuse for speeding (we'll ignore my 9 points for now!))...they just want us to pay our fines.

So this is basically him admitting that he can't think of anything clever enough to stop the practice (IR35 doesn't seem to be working too well!), so he is just going to up it a little instead...

So...in summary...cock!

[Denny]

Well, there is one consolation for me. Now that I've given up fags I've not only saved myself well over 2K a year, but I have avoided the £500 price hike I would have to pay now that Gordo has increased fags by 11p per packet.

That increase alone nearly pays for the added CT I would have to pay.

[Nixon Williams]

Sorry, a typo, Corporation tax will be 20% from 01/04/07, 21% from 01/04/08 & 22% from 01/04/09

Alan