Budget nasties in March for Contractors?
Discussion
Chaps,
I have just splashed back into the contracting world, having been a permie for the last 18 months. (A week in and I am loving it, should you be wondering ... )
However, a small grey cloud was forced into my clear blue sky of happiness over the weekend by a fellow contractor friend muttering about Greedy Gordo planning to muller contractors in the forthcoming budget. He had very few details, and couldn't tell me much, but was a bit dismal about it all. (His situation is slightly different as he uses an umbrella company and I don't, and he thought that this may mean that I am less affected than he will be.)
Is this a vile rumour, or has anyone else head of plans for more oh-nasties? (Obviously, it is a budget, so it will be lube-up time for everyone, as usual ... )
(This may have been discussed on here before, in which case apologies.)
Oli.
I have just splashed back into the contracting world, having been a permie for the last 18 months. (A week in and I am loving it, should you be wondering ... )
However, a small grey cloud was forced into my clear blue sky of happiness over the weekend by a fellow contractor friend muttering about Greedy Gordo planning to muller contractors in the forthcoming budget. He had very few details, and couldn't tell me much, but was a bit dismal about it all. (His situation is slightly different as he uses an umbrella company and I don't, and he thought that this may mean that I am less affected than he will be.)
Is this a vile rumour, or has anyone else head of plans for more oh-nasties? (Obviously, it is a budget, so it will be lube-up time for everyone, as usual ... )
(This may have been discussed on here before, in which case apologies.)
Oli.
Eric,
The resident PH Tax Expert strikes once again - many thanks.
That fits with what my friend told me. Particularly that he is more in line for problems than am I. (I have my own company and contract through that, keeping a suitable number of clients, IR35-friendly contracts, use my own kit not the client's kit and whatnot.)
Sounds like I can carry on affording to live, eat and put juice in the car (apart from the fact that all of those are going to be more expensive as well, eh?)
Thanks again.
Oli.
ETA: Eric, out of interest, where do you (and your fellow accountants) get your information from? Your post was very clear and categorical - I'm not doubting you, but wondering what are the systems and processes by which you get hold of this information in advance of the budget? And, if you can get hold of this information, what else will there be in the budget that we can have a sneak preview of? I expect that it will be a fairly benign one, as Brown is PM in waiting and he won't want to be seen as a complete b45st4rd before taking office, but I could be wrong.
The resident PH Tax Expert strikes once again - many thanks.
That fits with what my friend told me. Particularly that he is more in line for problems than am I. (I have my own company and contract through that, keeping a suitable number of clients, IR35-friendly contracts, use my own kit not the client's kit and whatnot.)
Sounds like I can carry on affording to live, eat and put juice in the car (apart from the fact that all of those are going to be more expensive as well, eh?)
Thanks again.
Oli.
ETA: Eric, out of interest, where do you (and your fellow accountants) get your information from? Your post was very clear and categorical - I'm not doubting you, but wondering what are the systems and processes by which you get hold of this information in advance of the budget? And, if you can get hold of this information, what else will there be in the budget that we can have a sneak preview of? I expect that it will be a fairly benign one, as Brown is PM in waiting and he won't want to be seen as a complete b45st4rd before taking office, but I could be wrong.
Edited by zcacogp on Monday 5th March 09:38
Eric Mc said:
Being a member of three professional bodies, I receive a number of accounting and tax related magazines which keep me up to date.
I also attend regular update lectures during the yeat.
I am a member of the FSB (Federtaion of Small Business) and their magazines contain quite a lot of good technical information too.
Finally, the websites, www.accountingweb.co.uk and www.taxationweb.co.uk are always worth checking at least once a week.
Fast-route to the inside track. Thanks - I had wondered. I also attend regular update lectures during the yeat.
I am a member of the FSB (Federtaion of Small Business) and their magazines contain quite a lot of good technical information too.
Finally, the websites, www.accountingweb.co.uk and www.taxationweb.co.uk are always worth checking at least once a week.
Presuably HMRC keep the professional bodies updated with their thoughts as they develop them.
Oli.
Leftie said:
Yesterdays Torygraph was saying that companies house had received loads of company formations from the individuals working under the umbrella copanies, which were in effect thwarting his attempts to fill his coffers by nailing the umbrella companies.
And isn't this entirely to be expected? You close off one part of the loophole, and hey presto! - everyone dashes off to fit through the other part of the loophole! The downside to all this is that next year, Fatso Brown (or his replacement) will nail everyone with small director-owned companies in another attempt to fill his coffers. Which means that the likes of me will be hammered.
Oli.
M Powered said:
I am one of those many who decided to avoid the majority of the government sponsored passage investigation activities forthcoming in April and have started a Ltd company.
It's currently a right poke in the eye registering for this, that and the other but I've heard the grass is greener on the other side.
The grass is always greener on the other side! It's currently a right poke in the eye registering for this, that and the other but I've heard the grass is greener on the other side.
It's a different type of grass, and it suits me (well, as I am re-discovering), but it doesn't suit everyone. All the best with it, and I seriously hope it works out. If you ever want to compare notes with someone who has done it before, do drop me a line ...
Oli.
Mrs Trackside said:
zcacogp, what is it you do?
Not a builder ... self-employed consultant, so (classically) I'll do anything that anyone pays me for! I specialise in handling of information, documents and records, for Central and Local Government, and the odd NDPB. ETA - Sorry to hear the Lotus plan is scuppered Tom. FWIW, most contractors with smart cars have them on lease, as it is meant to be better for tax reasons. My car is mine, personally, as I do very few business miles, and I like old cars with big engines, which apparently means I would get royally shafted tax-wise if I tried to put it through the company.
Oli.
Edited by zcacogp on Wednesday 7th March 22:50
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