Originally posted by SussexSeagull
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: State of the Market
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "State of the Market"
Collapse
-
-
Originally posted by jamesbrown View Post
Sure, it mitigates, but HMRC won't be happy until there is parity or worse, in their view and, since the benefits of "flexibility" afforded by contractors to the wider economy are hard to quantify (but, no doubt, real), ministers - particularly Labour ministers - will tend to listen to HMRC w/r to the "tax gap" and focus on that.
Sorting out employment status is very, very hard - which is why it hasn't been done - and there will most likely be some severe downstream consequences. For example, if they go with strict deeming criteria, like other jurisdictions, you will get most of the downsides w/r to loss of flexibility, while the expected extra tax may be lower than expected if it becomes easier to game the criteria. One of the problems with employment status is that you cannot really address it independently of tax, but they are nevertheless distinct bodies of legislation, presently.
Leave a comment:
-
Originally posted by oliverson View Post
It's not the growth that concerns me, it's the levels of taxation, immigration, criminality, lack of opportunity, social destruction, oh and dividend tax! It's everything really. Not the country I grew up in. This century has proved to be a disaster!
I have anything from now until maybe 25 years left on this planet before I end up in it. What I don't have time for is another decade plus of austerity to 'fix the NHS' (and the rest).
Leave a comment:
-
Originally posted by oliverson View Post
Currently sat on my roof terrace in Southern Spain, contemplating whether i could move here full time. Any tax rise on dividends, no matter how significant, would probably tip the balance. Digital Nomad Visa for me and my US client. 24% flat rate tax. Bye bye broken Britain.
Leave a comment:
-
Originally posted by SussexSeagull View Post
I said it reduces the upside of being outside of IR35, not eliminate it entirely. For one thing expenses would still very much remain an advantage of being outside.
I am sympathetic to any attempt to sort out worker status as frankly it is a dog's dinner at the moment. Back in the day we were essentially paid more money to buy us out of things like paid holidays and sick pay (although decent sick pay seems to be disappearing in permanent employment as well) but since Inside IR35 came into vogue in more and more places we don't get any upside for a decreasing financial premium.
More broadly the cost of Social Care for an ageing population has been ignored for about 30 years, with the exception of Theresa May and it cost her a majority, so I really don't see an alternative to higher tax take over the upcoming years.
Sorting out employment status is very, very hard - which is why it hasn't been done - and there will most likely be some severe downstream consequences. For example, if they go with strict deeming criteria, like other jurisdictions, you will get most of the downsides w/r to loss of flexibility, while the expected extra tax may be lower than expected if it becomes easier to game the criteria. One of the problems with employment status is that you cannot really address it independently of tax, but they are nevertheless distinct bodies of legislation, presently.
Leave a comment:
-
Originally posted by SussexSeagull View Post
Since 2010 the UK economy has grown more than Germany, France, Italy and Japan but less than the US and Canada. Do what is right for you but the west does have long term problems with the likes of China and India wanting more and more of the pie.
I have anything from now until maybe 25 years left on this planet before I end up in it. What I don't have time for is another decade plus of austerity to 'fix the NHS' (and the rest).Last edited by oliverson; Today, 13:25.
Leave a comment:
-
Originally posted by oliverson View Post
Currently sat on my roof terrace in Southern Spain, contemplating whether i could move here full time. Any tax rise on dividends, no matter how significant, would probably tip the balance. Digital Nomad Visa for me and my US client. 24% flat rate tax. Bye bye broken Britain.
Leave a comment:
-
Originally posted by jamesbrown View Post
It wouldn't. Even going forward, it would only mitigate it. You only pay dividend tax on dividends declared. However, it would likely mean that moneyboxing becomes the last frontier in the war against the perceived underpayment of tax by contracting businesses. Obviously, this is largely a falsehood after successive budgets have eroded the gap, and the only material difference now between full employment and contracting w/r to tax is the ErNI. Also, the October budget is just the beginning, not only of Labour budgets, but there's the thorny question of worker status that they are likely to "address" within the next year or two.
Addressing the self-employment tax gap will be the next thing, but much harder because that contains a group on lower incomes, typically, and with much greater public support (you can imagine the Sun headlines etc., pretty much the same as when any increase in fuel duty is proposed).
I am sympathetic to any attempt to sort out worker status as frankly it is a dog's dinner at the moment. Back in the day we were essentially paid more money to buy us out of things like paid holidays and sick pay (although decent sick pay seems to be disappearing in permanent employment as well) but since Inside IR35 came into vogue in more and more places we don't get any upside for a decreasing financial premium.
More broadly the cost of Social Care for an ageing population has been ignored for about 30 years, with the exception of Theresa May and it cost her a majority, so I really don't see an alternative to higher tax take over the upcoming years.
Leave a comment:
-
Originally posted by SussexSeagull View PostAny significant rise in tax on dividends begins to make the IR35 debate increasingly moot.
Leave a comment:
-
Originally posted by escapeUK View PostAs Seagull says it also solves the IR35 issue too, no more fighting in court as the taxes are the same.
Addressing the self-employment tax gap will be the next thing, but much harder because that contains a group on lower incomes, typically, and with much greater public support (you can imagine the Sun headlines etc., pretty much the same as when any increase in fuel duty is proposed).
Leave a comment:
-
Originally posted by oliverson View Post
News to me. I have a Telegraph subscription and monitor that site and the comments daily, though I suspect it's something this scumbag government will be looking at.
I could see the evil bs doing this, as they will say that income has two lots of NI and tax applied, so therefore its applying the same level of tax to this other "income" that is mostly rich people, so therefore fair.
As Seagull says it also solves the IR35 issue too, no more fighting in court as the taxes are the same.
Would feel sorry for investors though, all the risk but only 55% of the divis!
Leave a comment:
-
Any significant rise in tax on dividends begins to make the IR35 debate increasingly moot.
Leave a comment:
-
Originally posted by escapeUK View Post
Yes, I think there will be huge "unintended" consequences depending which form of theft the occupational government go for. Lot of people going to be selling assets, retiring early, stop paying into pensions, withdrawing money from the stock market, going on the sick. With the commies in power there is no point, working, saving, investing or all other things that actually give us a functioning economy and society.
One rumor I did hear from the Telegraphs comments, that tax on dividends would be substantially increased. Lets hope thats not true!
Leave a comment:
-
Originally posted by Bluenose View PostJust remember peeps b) the 30th October budget will be one for the ages.
One rumor I did hear from the Telegraphs comments, that tax on dividends would be substantially increased. Lets hope thats not true!
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: