Any point in contracting after April 2016?

[SpontaneousOrder]

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

My train fare from east anglia to London is nearly 200 a week alone. Then I stay in a hotel 1 night a week otherwise I start getting ill after a few months. Hotels in London are expensive.

Pardon me, I'm not native.
Guy is complaining that he cant claim 2700 for 5 star hotel anymore and all you pick up is my grammar. Jesus you can have a room for 3 months for that cash , gods sake. I was very poor few years back..

A travel lodge in London 5 nights a week will cost you almost that much - not including getting there and back.

[eek]

A travel lodge in London 5 nights a week will cost you almost that much - not including getting there and back.

Yep with the tube strikes taking place I looked at the cost £125 a night... That's £500 a week or £2000 a month before any other costs...

[Intel]

Yep with the tube strikes taking place I looked at the cost £125 a night... That's £500 a week or £2000 a month before any other costs...

Come and work up north. It's a lot cheaper and we have awesome pies..... ;-)

One serious note I can earn almost as much as London in Manchester, Sheffield and Leeds, and have half the living costs . No brainer.

[TykeMerc]

Come and work up north. It's a lot cheaper and we have awesome pies..... ;-)

One serious note I can earn almost as much as London in Manchester, Sheffield and Leeds, and have half the living costs . No brainer.

It's not a matter of choice for me, the vast majority of the type of projects I work on are down South, but outside London. The nearest project I've had in over a decade has been a bit under 100 miles each way. I'd be quite happy to have projects available in Leeds or Manchester, I could comfortably commute those.

[expat]

Quite a few contractors work in other countries too. If you live well outside London and you have a contract in Munich with a weekly commute, expenses as low as £1500 a month is only a dream.

[NotAllThere]

Hi All,

Just a quick question for people. The way things are going at the moment, is there going to be any point in contracting after April 2016?...

A few points:

1. Pre around 1997, expenses to and from place of work were not generally claimable by contractors. The contract market nonetheless increased.
2. When IR35 came in (2000), there were further predictions of doom, and the contract market (after stalling for a bit due to other reasons) nonetheless increased.
3. It took years before the actual working out of IR35 became clear.
4. If you want to increase your take home pay, the focus should be on seeking to earn more, not paying less tax (while still taking advantage of any concessions/loopholes you can find). Taxes can always go up and down, and taxation is never fair(tm) for everyone.

The advantages of contracting (by and large):

1. Take home pay more than doing the same kind of work as a permie.
2. No appraisals, no target setting, no HR interference.
3. Choosing own way of working.
4. Control of your own career path
5. Flexibility over when you work
6. Opportunity to move into other business areas

Obviously the first of these is primary to most. If after all the changes it remains true, then there would be point in continuing. For others the remaining points may still swing the balance.

Quite a few contractors work in other countries too. If you live well outside London and you have a contract in Munich with a weekly commute, expenses as low as £1500 a month is only a dream.

Pre 97, one exception to expenses for travelling to work was if your place of work was in another country. In 96 I was working for EuroTunnel, so I asked if I could be based in Calais. It was agreed, and I subsequently reduced my tax bill significantly. This exception may still be on the books, for all I know!

[dynamicsaxcontractor]

Quite a few contractors work in other countries too. If you live well outside London and you have a contract in Munich with a weekly commute, expenses as low as £1500 a month is only a dream.

I haven't posted here for many years, but I have still been reading.

This topic is getting me fairly upset, especially when some "contractors?" are deciding what's reasonable travel expense or not. I have been working abroad on different projects for the last 3 years. Flying out to the other side of Europe and staying at hotels in more expensive European countries adds up quick. Last year I had travel and subsistence of £30K, year before £50K. If I can't claim this back from the company in the future I simply won't be able to take these contracts. That would be a shame for the HMRC as I have brought a lot of money in from abroad and paid tax for here.

[expat]

I haven't posted here for many years, but I have still been reading.

This topic is getting me fairly upset, especially when some "contractors?" are deciding what's reasonable travel expense or not. I have been working abroad on different projects for the last 3 years. Flying out to the other side of Europe and staying at hotels in more expensive European countries adds up quick. Last year I had travel and subsistence of £50K, year before £80K. If I can't claim this back from the company in the future I simply won't be able to take these contracts. That would be a shame for the HMRC as I have brought a lot of money in from abroad and paid tax for here.

In my case I think I would just stop coming back. I would find the UK easier to give up than my contracts in other countries. YMMV.

[The Spartan]

I unfortunately do not live in an area that has many contracts and will generally need to travel and stay over for the majority of the contracts that I do so for me it would mean I'd have to close the company. The dividend tax will mean that I will pay an extra 2k a year which I'm fine with as compared to the amount of expenses I claim when working in say London it's a small amount.

[gables]

A few points:

1. Pre around 1997, expenses to and from place of work were not generally claimable by contractors. The contract market nonetheless increased.
2. When IR35 came in (2000), there were further predictions of doom, and the contract market (after stalling for a bit due to other reasons) nonetheless increased.
3. It took years before the actual working out of IR35 became clear.
4. If you want to increase your take home pay, the focus should be on seeking to earn more, not paying less tax (while still taking advantage of any concessions/loopholes you can find). Taxes can always go up and down, and taxation is never fair(tm) for everyone.

The advantages of contracting (by and large):

1. Take home pay more than doing the same kind of work as a permie.
2. No appraisals, no target setting, no HR interference.
3. Choosing own way of working.
4. Control of your own career path
5. Flexibility over when you work
6. Opportunity to move into other business areas

Obviously the first of these is primary to most. If after all the changes it remains true, then there would be point in continuing. For others the remaining points may still swing the balance.

Nail on the head