Today's Budget

StevieJ

Over 65 aged pensioners won't be happy.

FTBFun

HAMISH_MCTAVISH wrote: »

Saw on the news yesterday someone who claimed the 50p income tax rate (+NI) is the third highest income tax rate in the World.

Not exactly a great advert in terms of Britain being "open for business".

It'd be 52% including NI.

This isn't true - top rate in Sweden is 57%; and in Norway, Denmark, Gabon(!) and Belgium is 55%.

http://en.wikipedia.org/wiki/Tax_rates_around_the_world

FTBFun

Main bits announced:

• additional rate to fall to 45% from 6 April 2013
• Stamp duty on £2m+ properties bought through companies going up to 15% :eek:
• 7% stamp duty on properties >£2m
• Bank levy up to 0.05%
• Alcohol duty frozen :beer:
• Tobacco duty up 5%
• Personal allowance to £9,205 from 6 April 2013
• Age-related allowance to be phased out

CRASH_BANG_WALLOP

Graham_Devon wrote: »

You do come across some extraordinary cases, which you put across as completely normal.

With the fraud you keep on mentioning (like claiming for a home office several times over) makes me believe you are just looking to make things up for reaction rather than it being true. I believe this more so when you feel you have to highlight the ethnicity of a GP, highlight the "close to, if not outright" fraud, and then talk about his BTL's.

conrad and his anecdotes so i would not believe a word that comes out of the dudes mouth

Thrugelmir

FTBFun wrote: »

Interesting.

Normally a self employed person with £52k of profit would be taxed as follows:

£52k - £7475 = £44,525 taxable income
£35k @ 20% = £7k
£9,525 @ 40% = £3,810

Class 4 NIC: first £7,225 exempt
£35,250 @ 9% = £3,172.50
£9,525 @ 2% = £190.50

So total tax of £10,810, NIC of £3,363. Net profit after tax of £37,827.

If you had £25k of profit:

£17,525@ 20% = £3,505
£17,775 @ 9% = £1,599.75

So tax and NIC of £5,104.75

Running it through a company, paid in dividends with a small nominal "salary":

Corp tax on £52k
- £7,070 salary = £44,930 @: 20% = £8,986

Net profit available to be distributed as a dividend:
£44,525 - £8,986 = £35,539

Tax on individual:

Salary £7,070 (no tax or NIC)
Dividends £35,539 (10% tax credit so no tax).

Total tax £8,986. Which is nearly double what someone on £25k would pay.

EDIT: you added a bit on cabbies whilst I was typing. HMRC are going after cabbies at the moment as they think there is systemic tax evasion there, which is what you've been hinting at.

Self employed wouldn't get a minimum of 28 paid days a year paid holiday. So would lose £5,578 of income.

chewmylegoff

Stamp duty loophole hasn't been closed as far as I can see as you just transfer the property you currently own into a company by gifting it. Consideration paid = 0 so stamp duty = 0, hey presto, now you can sell to Russian oligarch and they don't have to pay the stamp duty.

pqrdef

Thrugelmir wrote: »

Self employed wouldn't get a minimum of 28 paid days a year paid holiday. So would lose £5,578 of income.

I see no reason why a cabbie shouldn't take 28 days holiday.

If he wants to call it paid holiday, he'll have to pay himself by putting some money aside for the purpose while he's working.

Same as everybody else. If a factory worker gets 28 days holiday, then he loses 28 days production, and his wages for the whole year including the holiday will have to come out of this reduced production, so will be that much less accordingly.

It's not like the holiday pay is going to come from anywhere else. It can only be what he earns while he's working, and just like the self-employed guy, when he's on holiday he's not working and not making any money.

Thrugelmir

pqrdef wrote: »

If he wants to call it paid holiday, he'll have to pay himself by putting some money aside for the purpose while he's working.

That misses my point. Self employed only earn when they're working.

Many long serving public sector employees get over 40 days a year holiday.

pqrdef

Thrugelmir wrote: »

That misses my point. Self employed only earn when they're working.

So does everybody else. Suppose a factory worker's labour is worth £500 a week. That's only while he's working, obviously - he's worth £0 while he's on holiday. So obviously he can't be paid £500 a week while he's working and also £500 a week while he's on holiday, because the lost production while he's on holiday means that he isn't worth £500 x 52.

He may be worth £500 x 47, in which case he'll be paid £450 x 52.

But the self-employed guy complains that he can't make £500 x 47 and pay himself £500 x 52 as if this predicament is unique to self-employed people.

Joe_Bloggs

If you take time off work then work/backlog mounts up. So holidays just postpone work for the future with shortened deadlines.
J_B.