Any point in contracting after April 2016?

[pr1]

Good shout, like all things in life it depends on your personal circumstances. I certainly didn't take into account kids as I'm young, free and single....well, single anyway....

I did prefix the figures as simplified, maybe I should have emphasised how simplified...


Bashed the figures a bit more. Hopefully fixed (for my scenario) now.

You definitely should stay in touch with your accountant - although it doesn't change the result, in your example you're paying corporation tax before taking off salary (10k salary is a business expense). Don't worry, once you change it again we'll notice something else...

and @diseasex - it's definitely plausible for people to spend 1k++ per month if they need 3 or 4 hotel nights per week

[Intel]

it doesn't matter what you do to the numbers, the result is always going to show the difference to be 40% of the expenses (assuming you normally take up to higher rate tax limit) because you're losing the relief from 20% corp tax then 25% higher rate tax (0.8*0.75 = 0.6)

Yep in my scenario it'll always be 40%. I just like to work the figures to prove it to myself. Shame I'm cr*p at the figures

So 40% of 1500 expenses per month is 600. Divided by approx 22 days per month is £28 a day. Hence in my niche scenario the rate needs to go up by that to cover the removal of tax relief assuming I need to pick up 1500 a month in expenses (I'm way under that to be honest).

Not a huge amount in the grand scheme of things and probably something the clients would stand.

[Intel]

You definitely should stay in touch with your accountant - although it doesn't change the result, in your example you're paying corporation tax before taking off salary (10k salary is a business expense). Don't worry, once you change it again we'll notice something else...

and @diseasex - it's definitely plausible for people to spend 1k++ per month if they need 3 or 4 hotel nights per week

FFS. Again.

[LondonManc]

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

Where do you sleep, doorways?

[olimor]

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

What do you regard as travelling?

I claim £126 a month and I work 7 miles away from where I live.

I used to work in Swindon which is a 160 mile round trip each day which (for a 4 week month) equates to £1440 (with a .45p per mile charge).

[pr1]

Yep in my scenario it'll always be 40%. I just like to work the figures to prove it to myself. Shame I'm cr*p at the figures

So 40% of 1500 expenses per month is 600. Divided by approx 22 days per month is £28 a day. Hence in my niche scenario the rate needs to go up by that to cover the removal of tax relief assuming I need to pick up 1500 a month in expenses (I'm way under that to be honest).

Not a huge amount in the grand scheme of things and probably something the clients would stand.

and for me it's even less impact, I have a short commute from home and I'm on a lot less than 500pd - being able to claim it or not is pretty negligible for me but I can see how the sledge hammer to crack a nut approach might leave some scotland-to-london contractors crippled

[controversial] (crippled in that they probably wont be able to afford to take out their fourth BTL mortgage or they'll have to postpone upgrading their porsche to a ferrari) [/controversial]

[MicrosoftBob]

I can't imagine carrying on with my 600 mile round trip to client site if expenses aren't allowable, they won't pay more so it's either going to be go permy or commute into London and ignore other contracts unless they don't involve a hotel/b&B/hovel during the week

[eek]

I can't imagine carrying on with my 600 mile round trip to client site if expenses aren't allowable, they won't pay more so it's either going to be go permy or commute into London and ignore other contracts unless they don't involve a hotel/b&B/hovel during the week

I think we will continually come back to this problem.... Which was one reason for my survey to see what proportion of contractors do do a weekly commute...

[TykeMerc]

That's all based on 1500 T&S pm , I mean realistically who spends that much ? mine is like 200-300 when im traveling..

Don't be such a bonehead, or at least do an impression of having a brain when posting from that ID.

Plenty of people have monthly T&S expenses that high and higher. I have averaged higher than that for most of the last decade, none of it working in London. If I stayed in the same hotels that loads of the permy consultants I work with or along side then I'd top an average of £2,750 a month.

[diseasex]

Don't be such a bonehead, or at least do an impression of having a brain when posting from that ID.

Plenty of people have monthly T&S expenses that high and higher. I have averaged higher than that for most of the last decade, none of it working in London. If I stayed in the same hotels that loads of the permy consultants I work with or along side then I'd top an average of £2,750 a month.

Well you obviously have no idea how to invest, I recon you have no idea how to save too.