Suggestions for Osborne's July budget

caronoel

Generali wrote: »

Not really, who cares?

Adam Smith? You may have heard of him.

http://economicsconcepts.com/canons_of_taxation.htm

The Principle of Equality is the first of his four Principles of Taxation, which form the basis of tax systems in the developed world.

caronoel

cells wrote: »

same as with your ludicrous train fare examples. people paying for first class because according to you they get 20% tax break. Well I can tell you most micro businesses will take the cheapest ticket because a £10 ticket costs a whole lot less than a £200 ticket 20% offset as cost or not......

As opposed to regular 9-5 commuters who cannot claim a single penny of their commuting costs against their income tax.

cells

caronoel wrote: »

I dont know - neither do you, but to give contractors an additional £10k TFA over and above 9-5 employees is inequitable. This is the key point.

but micro companies don't get a £10k Tax Free Allowance over and above your good self or certainly that is not what is normal

but even if we take that £10k of claiming costs to be true, its only a £2k benefit as the tax on corporation profits is 20%

a lot of that £2k benefit you hate will be eaten up by accountants and your time value dealing with that side of things.

caronoel

Wow!

It seems the contractors are all out today.

I think I may have hit a raw nerve!

cells

caronoel wrote: »

As opposed to regular 9-5 commuters who cannot claim a single penny of their commuting costs against their income tax.

i don't think you can claim regular commuting costs but again lets assume you pay £2k a year for your commuting costs that is not a £2k benefit that is a 20% of £2k benefit = £400

but if you are so convinced i will take your side if you are happy for all employed people like your good self to have to gift the state £1k a year in not having to mess around with accountants and do 5 days a year in community services for the time it takes for all that BS too

michaels

Generali wrote: »

If you're going to get the deficit down you effectively have three choices:

1. Cut welfare spending
2. Cut health spending
3. The power of prayer

That's about it.

Um...

4. Raise taxes on middle income PAYE earners who can't evade it nor afford to work fewer hours

caronoel

cells wrote: »

i don't think you can claim regular commuting costs but again lets assume you pay £2k a year for your commuting costs that is not a £2k benefit that is a 20% of £2k benefit = £400

Regular commuting costs and a whole lot more goodies can be claimed:
http://www.contractoruk.com/expenses/contractor_expenses_what_can_and_cannot_be_claimed.html

As for only 20% - How I would love a 20% reduction on my £5k annual travel card but I don't think Mr Osborne would be that generous

:rotfl:

cells

caronoel wrote: »

Regular commuting costs and a whole lot more goodies can be claimed:
http://www.contractoruk.com/expenses/contractor_expenses_what_can_and_cannot_be_claimed.html

As for only 20% - How I would love a 20% reduction on my £5k annual travel card but I don't think Mr Osborne would be that generous

:rotfl:

I live within walking distance of my place of work. That is better than your £5k travel card (is that even true?).

Your link suggests they can claim for train tickets to a TEMPORARY place of work which makes sense. So if you are working for somewhere for a long time or plan to then you cant claim that

As for your 20% discount on your travail card, ok great, but what about the costs both in £££ and time for the accountants and other costs (legal, insurance, etc)?

you can have 20% off your train ticket if you pay £2k account fees?

anyway enough of this ping pong game, go self employed/micro business if you think its that great

caronoel

cells wrote: »

I live within walking distance of my place of work. That is better than your £5k travel card (is that even true?)

As for your 20% discount on your travail card, ok great, but what about the costs both in £££ and time for the accountants and other costs (legal, insurance, etc)?

Would you like 20% off your train ticket if you had to pay £2k account fees?

You dont need to pay £2k accountancy fees for a simple one man band company. It is relatively simple, and something you should be able to do yourself.

I'd imagine that the Chancellor will revisit this exemption on the likes of commuting costs, and work meals as it is inequtable.

The other wheeze he needs to look at is the flat rate VAT scheme, which allows contractors to charge 20% VAT to their customer but only pass on a much smaller amount to the taxman:
http://www.contractoruk.com/vat/flat_rate.html

caronoel

Dont forget that if your hubby or missus or an elderly relative doesnt have any earned income, you can also set them up as a director and employee of your company thereby doubling the PAYE applicable amount you can take out of the company tax free or at standard rate.

There are too many tax avoidance schemes for contractors that need to be closed out