Reply to: 24% corporation tax

[jamesbrown]

not true,
if you work through Ltd company and have 100k income,
salary 12500
corp tax 21000
tax+NI on dividends of 66500=12500
total tax = 33.5%

still 10% less tax than going through umbrella

[Andy2]

It's 24% + 7.5% = 31.5% or even 24% + 32.5% = 56.5%. Umbrella is a bargain compared to that.

not true,
if you work through Ltd company and have 100k income,
salary 12500
corp tax 21000
tax+NI on dividends of 66500=12500
total tax = 33.5%

still 10% less tax than going through umbrella

[jayn200]

24% of £0 doesn't sound all that bad from a future tax perspective to be honest. About the same as my current situation of 18% of £0.

19% right now.

[m0n1k3r]

it's only fair. I am paying 43% tax under umbrella. 24% is a bargain comapred to that.
pay your bit.

It's 24% + 7.5% = 31.5% or even 24% + 32.5% = 56.5%. Umbrella is a bargain compared to that.

[m0n1k3r]

5% is a pretty big jump!

It's only a 26% increase. There's more to come.

[dx4100]

24% of £0 doesn't sound all that bad from a future tax perspective to be honest. About the same as my current situation of 18% of £0.

[eek]

HS2 actually creates capacity on the most crowded local commuter lines, because Inter-City trains also run on the same lines as commuter trains. This is a problem, as these commuter lines are the most overcrowded. The two choices are to either take Inter-City trains off the current commuter lines or build extra commuter lines. Both of these probably will have similar costs. Therefore stopping HS2 probably won't save money.

HS2's problems were created the first time they talked about speed rather than capacity. The conversation should have been we run dual speed routes on a single track so can only provide x trains an hour. By separating out the routes we can triple / quadruple the number of trains on those routes allowing more people to travel locally more often and more people to travel long distances faster.

Instead they talked about speed and didn't even mention the capacity issue.

[BlasterBates]

HS2 actually creates capacity on the most crowded local commuter lines, because Inter-City trains also run on the same lines as commuter trains. This is a problem, as these commuter lines are the most overcrowded. The two choices are to either take Inter-City trains off the current commuter lines or build extra commuter lines. Both of these probably will have similar costs. Therefore stopping HS2 probably won't save money.

[OwlHoot]

Yep, and cancel the insanely outdated HS2 project. That will add £100 billion to the pot immediately (actually, probably double that or more by the time the massive white elephant is complete).

I really wonder if Boris is firing on all cylinders pressing on obsessively with HS2. If he thinks it will "connect northern voters" or some such utter bollocks, he is living in a bubble so imprenetrable that no known material outside Larry Niven's science fiction novels could match it!

2020-09-04 After 3,160 days... HS2 digging finally starts: Boris Johnson hails controversial rail link as engine for jobs growth as construction starts at last

[jamesbrown]

I hope so. As mentioned, I only got into the contracting market 1.5 years ago and really do appreciate advice of people who have been here for a longer time on this forum

Sure

The problem in recent years is that any old Treasury memo like, say, "Outrageous Options For Ministers To Consider That Will Never Happen, But Are Included Here For Completeness" gets leaked with intent, as though it's core policy (e.g., to damage or build pressure against the Chancellor) and the Treasury itself also engages in massive kite flying to render palatable the far more mundane tax hikes when they finally arrive, as does No. 10 ("Boris to the rescue, vetoes all tax hikes"). Budget speculation is always a clown car. No doubt they are seriously considering some tax rises, mainly for later this Parliament, but these headline grabbing ones are pure fantasy.

[LateContractor]

Neither of those two things is going to happen. The second of those two things wasn't even among the kites flown.

HTH.

I hope so. As mentioned, I only got into the contracting market 1.5 years ago and really do appreciate advice of people who have been here for a longer time on this forum

[jamesbrown]

I really came into contracting at the wrong time.

Increase in 5% of corporation tax and then an increase of 12.5% dividend tax on ~ £40,000 will be killer.

Unfortunately I am one who has lost out a lot due to Covid, haven't been a contractor long, received almost nothing from the government and probably be hit by tax rises.

I think that I with many others will have to consider the difference in perm roles Vs contract.

The difficulty for me is that my work is usually 1-2 years in companies and quite specific i.e moving around. However taking the risk of not having a contract for the same pay will be very difficult to justify

Neither of those two things is going to happen. The second of those two things wasn't even among the kites flown.

HTH.

[LateContractor]

I really came into contracting at the wrong time.

Increase in 5% of corporation tax and then an increase of 12.5% dividend tax on ~ £40,000 will be killer.

Unfortunately I am one who has lost out a lot due to Covid, haven't been a contractor long, received almost nothing from the government and probably be hit by tax rises.

I think that I with many others will have to consider the difference in perm roles Vs contract.

The difficulty for me is that my work is usually 1-2 years in companies and quite specific i.e moving around. However taking the risk of not having a contract for the same pay will be very difficult to justify

[OwlHoot]

I doubt the 100 billion is really funded so it isn't there to go into the pot. ..

True of course, but then neither yet is all the extra tax revenue being discussed.

[BR14]

A General Products Hull!

Today Number 10, tomorrow Andromeda!

called 'the suspension of disbelief' ?