And the first leg is removed

[youngguy]

Yes. The fact that the Government doesn't want us contractor vermin to continue contracting. We are expected to clear the field for "Business" to take over... by "Business", we mean the big cartels that Gauke & friends love so much, the ones that get HMRC "sweet deals" and who Ms. May wants to keep happy.
It's a textbook case of disincentivization - they simply make individual contracting so unattractive that either new people don't the enter field, and old timers say "ah, f* it, it's just not worth the hassle anymore".

Obviously we need the detail and have to do the sums but if thete is no tax efficient way to make pension payments then contracting is all but dead and the big four and large SIs take over...something which Gov tried to start to break a few yrs ago.

The mind boggles

[VectraMan]

So let's say I am a PS contractors on 500pd (10k pcm).
I lose 4-5k in tax (??) At source
That leaves me c5k to personally live on and pay for my business expenses (unless I no longer need insurances etc) AND make personal pension payments ......wow

Tell me I am wrong and have missed something!

I haven't seen anything about pensions, and pension contributions aren't part of the 5%.

[youngguy]

I haven't seen anything about pensions, and pension contributions aren't part of the 5%.

That may be some consolation and I'd hope Gov allow ltds to continue to have this as a 'pre tax expense'. They should be encouraging us to save and look after yourselves as we get older surely.

[BoredBloke]

Yes. The fact that the Government doesn't want us contractor vermin to continue contracting. We are expected to clear the field for "Business" to take over... by "Business", we mean the big cartels that Gauke & friends love so much, the ones that get HMRC "sweet deals" and who Ms. May wants to keep happy.
It's a textbook case of disincentivization - they simply make individual contracting so unattractive that either new people don't the enter field, and old timers say "ah, f* it, it's just not worth the hassle anymore".

I agree - the very same companies that they have lowered the corp tax for....you know, the ones who pay no corp tax!

[MPwannadecentincome]

I haven't seen anything about pensions, and pension contributions aren't part of the 5%.

Also you have to fill in a tax form and you enter pension contributions on there, then you get tax relief. Unfortunately no NI relief :-(

[youngguy]

Also you have to fill in a tax form and you enter pension contributions on there, then you get tax relief. Unfortunately no NI relief :-(

So how much worse off will contractors be?

[northernladuk]

So how much worse off will contractors be?

Depends.

[youngguy]

Depends.

Go on!

I appreciate we need more detail and the full doc, but I'd be interested in any fag packet idea .....this is due to a possible opportunity so ideally understanding what kind of % hit this may be would be useful and my brain is incapable of such accountancy

[northernladuk]

Go on!

I appreciate we need more detail and the full doc, but I'd be interested in any fag packet idea .....this is due to a possible opportunity so ideally understanding what kind of % hit this may be would be useful and my brain is incapable of such accountancy

A bit.

[youngguy]

A bit.

Well that's my mind blown. I bow to your knowledge