Reply to: So, what's in the PBR then?

[conned tractor]

Assuming the flat rate scheme make things simpler by estimating what a business of your type take in VAT against what it should typically recover, thus applying a fixed percentage, then:

Why do

Computer and IT consultancy or data processing = 11.5

and

Secretarial services = 9.5


As i'm sure a lot of you are glorified secretaries really, is anyone willing to reclass themselves as a secretary for the 2% extra wedge?





PS: I know the answer really; typical costs/ typical rates of pay(total turnover).

[Sally BFCA]

Anything in the PBR yet about possibly levying Employer’s NICs on dividends, especially for us put-upon small businesses?

No, there was nothing.
On a positive note, they have left contractors alone...again, for the time being.

The full report can be downloaded from our website.

[kryten22uk]

What you do?

Laundry or dry-cleaning services??????? ;-)

Other Business Services not listed elsewhere. Very catchy.

[TheFaQQer]

What you do?

Laundry or dry-cleaning services??????? ;-)

I'd guess "Business services that are not listed elsewhere"

[Andy2]

What you do?

Laundry or dry-cleaning services??????? ;-)

probably money laundering

[Jeebo72]

Woohoo, mine is back to 10.5%, so i'm better off too.

What you do?

Laundry or dry-cleaning services??????? ;-)

[kryten22uk]

Woohoo, mine is back to 10.5%, so i'm better off too.

[TheFaQQer]

Edited to remove complete tosh...

http://www.hmrc.gov.uk/vat/start/sch...at-rate.htm#5a

So, if you were on 11.5% and move back onto 13%, then you are marginally better off

[HairyArsedBloke]

Just think of all those taxes you'd be paying on air travel - walk or hide in a lorry returning back to France, I am pretty sure nobody is checking them on the other end so you should be ok...

Hmmmmmm. There is an idea. HAB wanders off thinking "Waterloo -> Paris then CDG->MIA and on from there. I wonder how that compaires"

[TheFaQQer]

I thought new tax is effective immediately - probably backdated since it is legal to do this tulip in this country (even in Russia that's anti-constitutional to make negative adverse changes backdated).

yes - it applies from today through to April 5th. After that, there's no bankers bonus tax.

[AtW]

I just want to get some things sorted and then I'll be straight on to BA or AA to pay my fare to get out of here. Bastards want to mug me on that too.

Just think of all those taxes you'd be paying on air travel - walk or hide in a lorry returning back to France, I am pretty sure nobody is checking them on the other end so you should be ok...

[AtW]

I'd misheard - I thought that the tax was for the next year. Of course, it's a four month tax window, as it only applies until April 5th 2010.

Waste of time and breath.

I thought new tax is effective immediately - probably backdated since it is legal to do this tulip in this country (even in Russia that's anti-constitutional to make negative adverse changes backdated).

[TheFaQQer]

Where's the money coming from / going?

Measures announced since Budget 2009
------------------------------------
                                                                                   09/10  10/11  11/12  12/13
Stamp Duty: exemption for company buybacks of shares of overseas branches   Tax        0     -5     -5     -5
Financial products avoidance                                                Tax      +50   +100   +100    +50
Pensions tax: anti-forestalling rules                                       Tax      -30    -40      0      0
Digital Britain: Landline Duty                                              Tax        0    +90   +175   +175
Gurkhas: removal of 1997 cut-off                                            Spend    -70   -240      0      0
Cold Weather Payments                                                       Spend    -20      0      0      0
Funding for Building Britain's Future                                       Spend    -35    +35      0      0

Measures announced at Pre-Budget Report 2009
--------------------------------------------
                                                                                   09/10  10/11  11/12  12/13
Freeze Higher Rate Threshold in 2012-13                                     Tax        0      0      0   +400
Increase NICs Primary Threshold by £570 in 2011-12                          Tax        0      0 -1,480 -1,500
Increase employer NICs rate by 0.5% from 2011-12                            Tax        0      0 +2,350 +2,470
Increase main NICs rate by 0.5% from 2011-12                                Tax        0      0 +1,970 +2,080
Increase additional NICs rate by 0.5% from 2011-12                          Tax        0      0   +320   +340
Pensions tax: updated income definition                                     Tax      -10    -40      0   +500
Freeze Inheritance Tax Threshold in 2010-11                                 Tax        0    +80   +170   +190
Bank payroll tax                                                            Tax     +550      0      0      0
Salary sacrifice: workplace canteens                                        Tax        0      0   +110   +110
Pensions auto-enrolment: slower introduction                                Tax        0      0      0   +100
Insurance Premium Tax: avoidance                                            Tax       +5    +10    +10    +10
Index linked gilts                                                          Tax        0    +40    +65    +40
Substantial donors to charity: replacement of anti-avoidance legislation    Tax        0    -10    -10    -10
Rates on empty property: temporary exemption                                Tax        0   -135    +10      0
Small Companies Rate of corporation tax: defer increase to April 2011       Tax        0    -10   -380   -110
Bingo Duty: reduce to 20%                                                   Tax        0     -5    -10    -10
Seafarer's Earning deduction                                                Tax        0      0     -5     -5
Venture Capital Schemes: State Aid changes                                  Tax        0      0    -20    -30
Strategic Investment Fund addition                                          Spend      0   -110      0      0
Climate change levy: reduction of relief from 2011-12                       Tax        0      0    +50    +50
Fuel Benefit Charge: increase multiplier                                    Tax        0    +50    +45    +45
Company Car Tax: extend bands from 2012-13                                  Tax        0      0      0   +120
Biofuels Duty Differential: limited extension                               Tax        0    -10    -10      0
Electric vehicles: tax relief                                               Tax        0     -5     -5    neg
Warm Front and Greener Boiler Incentive                                     Spend      0    -85      0      0
Tax relief for travel expenses                                              Tax        0    +35    +85    +85
Extension of free school meals                                              Spend      0   -140      -      -
Benefits uprating                                                           Spend      0   -700      0      0
Local authority guideline rents                                             Spend      0   -115      -      0
Money Guidance rollout in 2010-11                                           Spend      0    -10      0      0
Working Tax Credits: extension to over 65s from April 2010                  Spend      0     -5      -      -
Tackling benefit error                                                      Spend      0    +95      -      -
Housing Benefit: managing gains from Local Housing Allowance from 2011      Spend      0    -40      -      -
Support for Mortgage Interest                                               Spend    -25    -70      0      0

TOTAL POLICY DECISIONS                                                              +415 -1,240 +3,535 +5,095
Reserve: support for military operations                                    Spend      0 -2,500      0      0
Memo: Increase to Public Sector Current Expenditure                         Spend      0      0 -7,700 -6,900

2009/10 increase in government income of £415 million.
2010/11 increase in government debt of £3740 million.
2011/12 increase in government income of £3535 million (plus cut in public sector expenditure increase of £7700 million)
2012/13 increase in government income of £5095 million (plus cut in public sector expenditure increase of £6900 million)

[TheFaQQer]

Banks may just defer such bonuses until next tax year when this "one off" measure presumably lapses or new Govt takes place...

I'd misheard - I thought that the tax was for the next year. Of course, it's a four month tax window, as it only applies until April 5th 2010.

Waste of time and breath.

[moorfield]

Anything in the PBR yet about possibly levying Employer’s NICs on dividends, especially for us put-upon small businesses?

That will come after the election if you are dim enough to vote for them.