Reply to: Taxes under Tory Scum

[malvolio]

VAT FRS?

The changes they introduced to the VAT Flat Rate Scheme about 3years ago. Collecting VAT for the government used to make a couple of thousand pounds a year, but that was all removed for companies like ours.....

That's a classic case of misusing something because you can. FRS was expressly intended to help smaller business with many product lines such as the corner shop, who had to account for hundreds of transactions with variable VAT rates from exempt to full rate by allowing them to pass on a reasonable average return. It benefitted us OMBs by, as you say, giving us money for doing damn all extra work. So, gosh, it was removed; it is still there for the people it was meant to help with the appropriate SIC codes.

Sadly the people writing the legislation and the people scrutinising it for fitness of purpose are both incompetent, hence all the blurry rules and edge cases we have to cope with, from abuse of EBTs to the opt out.

[vetran]

Don't forget council tax, which has more than doubled since 2000 whilst the goverment has more than halved the central funding money they provide to councils. We pay nearly £2.5k for band D whilst the council cries poor and services continue to be cut.

Councils seem to have plenty of money for bus lanes. Well except Slough they went bust!

[mattster]

Divi tax massively up
Corp tax about to go up considerably
NICs about to go up (breaking manifesto promise)
Insurance “premium” tax massively up
CGT up by virtue of cutting Entrepreneurs relief

Anything else?

How many other countries in the world are increasing taxes now?

Don't forget council tax, which has more than doubled since 2000 whilst the goverment has more than halved the central funding money they provide to councils. We pay nearly £2.5k for band D whilst the council cries poor and services continue to be cut.

[DAR2008]

Divi tax massively up
Corp tax about to go up considerably
NICs about to go up (breaking manifesto promise)
Insurance “premium” tax massively up
CGT up by virtue of cutting Entrepreneurs relief

Anything else?

How many other countries in the world are increasing taxes now?

VAT FRS?

The changes they introduced to the VAT Flat Rate Scheme about 3years ago. Collecting VAT for the government used to make a couple of thousand pounds a year, but that was all removed for companies like ours.

And then of course there's the forcing of people into inside IR35 contracts, literally costing contractors 20k+ over night.

Labour never increased my taxes like this Tory government, they should be ashamed.

[d000hg]

These increases are another nail in the coffin for contracting and another reason why i will never take an inside contract, it is either an outside contract only or quit contracting and get a perm job instead.

I'm not going to feel too sorry for someone on 200k. Tough for those inside on more typical rates.

Just think how much more tax footballers are going to pay! Those on 400k a week will struggle to see half that now.

[Fraidycat]

So its looking like a 2.5% increase for inside IR35 contractors (1.25% employee + 1.25% employers NICs).

Contractor on 100K, inside IR35, will now pay another £2000+ tax?

Contractor on 200K, inside IR35, will now pay another £4000+ tax?

Feel bad today for those inside IR35, as if you weren't taxed already enough as it is.

These increases are another nail in the coffin for contracting and another reason why i will never take an inside contract, it is either an outside contract only or quit contracting and get a perm job instead.

[jamesbrown]

Yup, fair enough, I couldn't be arsed.

[SueEllen]

Yup, dividend tax up too. Whether it's 1.25% or 2.5% (equivalent to both NICs) is tbc.

Started a new thread so don't have to wade through this one.

[jamesbrown]

Yup, dividend tax up too. Whether it's 1.25% or 2.5% (equivalent to both NICs) is tbc.

[jamesbrown]

Sounds like they're increasing dividend tax too...

[d000hg]

How many other countries in the world are increasing taxes now?

The USA certainly is.

How many other countries had relatively low tax rates beforehand? I think they will nearly all be raising taxes on high earners.

[SueEllen]

For private primary residence house purchases (as opposed to commercial), how about 100% tax on profits on realisation within 2 years, tapering to 5% after 20 years. With a special bank accounts for holding realised profits intended for house purchase (like you've sold your house but not found one to buy). Stamp duty reduced to 0.5% and not payable unless the property is sold within 2 years.

But the governments of any colour don't want to slow down the housing market. They like it hot, because people feel they can get rich.

That's only for the next 15 years or so so....

[NotAllThere]

First thing that needs to go is PPRR. There is zero justification for one of the largest capital gains to be completely tax free. No tax is due until a gain is realised. We also need some anti-distortionary measures such as a heavy penalty for land banking, heavy taxation of second homes etc. Taxation of property in the UK is completely unbalanced and doesn’t need to penalise low-income households.

Want to start again?

For private primary residence house purchases (as opposed to commercial), how about 100% tax on profits on realisation within 2 years, tapering to 5% after 20 years. With a special bank accounts for holding realised profits intended for house purchase (like you've sold your house but not found one to buy). Stamp duty reduced to 0.5% and not payable unless the property is sold within 2 years.

But the governments of any colour don't want to slow down the housing market. They like it hot, because people feel they can get rich.

[vetran]

What is to prevent someone creating a trust to own a property and then becoming the principal trustee and beneficiary?

Then ownership would be in mortmain, and one might even be able to dodge inheritance tax by adding beneficiaries such as one's kids as trustees!

The only tax liability would be stamp duty, payable when a new beneficiary is added. But one pays stamp duty anyway when a property changes hands.

Then it would be a vehicle to avoid tax so it can be ignored, and we would have an IR35 like legislation.

Of course that would only happen when the little people started to avoid tax.

[_V_]

and wait until whats-his-face goes into the pensions to pay for the Corona bonanza.

Oh come on, you realise the costs involved? These things need to be paid for!

https://www.latimes.com/business/sto...-uk-government