Suggestions for Osborne's July budget

cells

caronoel wrote: »

Against that, the decision to go self-employed shouldnt be driven by the (many) tax advantages.

Something is wrong where tax skews investment and employment decisions.

What is needed is a level playing field for all. This will only be achieved through removing these tax loopholes.

i'll sign up to that if the government is willing to give all those people effected a full time job on the mean full time adult wage not far from where they live

your tax can then go up to pay for that and we will be happy all around

you want fairness that is about fair. prepare to absorb ~two million people

caronoel

cells wrote: »

what makes you say that? I showed an example where you could save upto £3k if you were paid a good contractors rate and were in work all year but I had forgotten to subtract the things you can not claim for while in the scheme so the £3k figure will actually be lower

You'd forgotten things you can claim for? You seemed to be very familiar with most things you can claim against tax.

In any event, VAT on input expenses can be recovered if they are capital items costing £2,000 or more.

So not only can you buy a topend laptop and write it off against your tax, you can even get the VAT back on it!

What a country we live in!!!!

cells wrote: »

I don't think there are many people on the flat rate scheme and I dont mind it being closed but its nowhere near as good a benefit as you claim.

Really? Where's your evidence for this assumption?

You only seem to have been made are of the flat rate VAT loophole this afternoon

cells wrote: »

I think its actually meant to be for businesses that have lots of receipts eg small retail places with maybe tens of thousands of receipts to help them with their admin so i wouldn't get rid of it on your not so expert consideration. if you think IT contractor rate is too low up it by one point instead

Now you are just rambling

What does one point on IT contractor rate mean?

caronoel

cells wrote: »

i'll sign up to that if the government is willing to give all those people effected a full time job on the mean full time adult wage not far from where they live

your tax can then go up to pay for that and we will be happy all around

you want fairness that is about fair. prepare to absorb ~two million people

Our taxes already pay for business failure. Once you have paid your national insurance, you are entitled to the same level of welfare as everyone else.

If you think that these businesses only exist due to the tax loopholes, then they aren't viable businesses in the first place.

cells

caronoel wrote: »

You'd forgotten things you can claim for? You seemed to be very familiar with most things you can claim against tax.

In any event, VAT on input expenses can be recovered if they are capital items costing £2,000 or more.

So not only can you buy a topend laptop and write it off against your tax, you can even get the VAT back on it!

What a country we live in!!!!

i think this is about the fifth time i have tried to correct you but it does not seem to be sinking in

you can not claim those things against TAX
you can claim them as a COST
which will reduce your PROFIT
and if you have less PROFIT you pay less TAX

Clearly any sane business person is more worried about maximising profit than minimising tax

So the idea that businesses will buy £200 first class rail tickets rather than £20 standard tickets or £2000 laptops instead of £400 laptops so as to pay less tax is stupid. They will and do buy the £20 train ticket or the cheaper laptop to maximise profit

and I have know about the flat rate scheme for years but I have never used it. and as we have been though this now multiple times the best case of a contractor working all year on £500+VAT a day and who has no single VAT-able cost will save £3k and everyone else the 99.9% of others will save a lot less on a scheme which IS MEANT TO SAVE MONEY AND ADMIN

Thrugelmir

caronoel wrote: »

Against that, the decision to go self-employed shouldnt be driven by the (many) tax advantages.

I doubt that many people start with that line of thinking. After all there's no tax advantages at all if your income is zero.

caronoel

cells wrote: »

i think this is about the fifth time i have tried to correct you but it does not seem to be sinking in

you can not claim those things against TAX
you can claim them as a COST
which will reduce your PROFIT
and if you have less PROFIT you pay less TAX

Clearly any sane business person is more worried about maximising profit than minimising tax

So the idea that businesses will buy £200 first class rail tickets rather than £20 standard tickets or £2000 laptops instead of £400 laptops so as to pay less tax is stupid. They will and do buy the £20 train ticket or the cheaper laptop to maximise profit

and I have know about the flat rate scheme for years but I have never used it. and as we have been though this now multiple times the best case of a contractor working all year on £500+VAT a day and who has no single VAT-able cost will save £3k and everyone else the 99.9% of others will save a lot less on a scheme which IS MEANT TO SAVE MONEY AND ADMIN

Oh dear - it might be time for someone's medication.

I dont think you can write your prescription costs off against your tax though!!



Have a "Thanks". It might calm you down a bit

Thrugelmir

caronoel wrote: »

So not only can you buy a topend laptop and write it off against your tax, you can even get the VAT back on it!

What a country we live in!!!!

Then the business is charging output VAT on revenue. So in net terms will be contributing to the Exchequer.

caronoel

Thrugelmir wrote: »

Then the business is charging output VAT on revenue. So in net terms will be contributing to the Exchequer.

They would be able to charge output VAT on their day rate though, irrespective of whether or not they could reclaim input VAT on laptops, phones, etc

cells

caronoel wrote: »

Our taxes already pay for business failure.

no they don't, plenty of people lose literally everything in failed businesses. not just their money but their homes their marriages and their kids

caronoel wrote: »

If you think that these businesses only exist due to the tax loopholes, then they aren't viable businesses in the first place.

we have spent pages now and i have tried to show you that they are not tax loopholes and that the treasury is not as stupid as you think they are.

the general view is that small businesses should be taxed a little less than big corporations which is why we have things like no VAT for businesses with sales below about £80 and a smaller corp tax for companies that make little profits. The flat rate scheme which you call a tax con is one of the ways the government charges small business less than big business. its meant to save a modest amount of money and accounting time

of course you can try to make the argument that all business from one man bands to mega multinational corps should pay the exact same rate of tax and you would have a more coherent and substantial argument if that was your point. but no, you try to label flat rate tax scheme as a con and the treasure as idiots and that you as our saviour in highlighting this inequality and injustice

caronoel

cells wrote: »

no they don't, plenty of people lose literally everything in failed businesses. not just their money but their homes their marriages and their kids



we have spent pages now and i have tried to show you that they are not tax loopholes and that the treasury is not as stupid as you think they are.

the general view is that small businesses should be taxed a little less than big corporations which is why we have things like no VAT for businesses with sales below about £80 and a smaller corp tax for companies that make little profits. The flat rate scheme which you call a tax con is one of the ways the government charges small business less than big business. its meant to save a modest amount of money and accounting time

of course you can try to make the argument that all business from one man bands to mega multinational corps should pay the exact same rate of tax and you would have a more coherent and substantial argument if that was your point. but no, you try to label flat rate tax scheme as a con and the treasure as idiots and that you as our saviour in highlighting this inequality and injusttic

Glad you have calmed down a little.

I do agree that small businesses should pay a slightly lower rate of CT than large ones, what I dont agree with are the proliferation of tax loopholes that we have discussed at length here that allow one man bands to salt away cash while regular employees pay PAYE and National Insurance.

This inequity is something that needs to be addressed. There is no reason why someone earning £100k plus should pay lower tax (and get child benefits if they have kids) compared to a salaried professional earning the same amount