Autumn Statement 2016: What this means for your income tax
Former_MSE_Lucinda
Posts: 46 Forumite
in Cutting tax
Chancellor Philip Hammond pledged to keep the tax-free personal allowance on track to reach £12,500 by 2020...
Read the full story:
'Autumn Statement 2016: What this means for your income tax'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
'Autumn Statement 2016: What this means for your income tax'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
0
Comments
-
It only requires annual inflation of 2.85% to make that £12,500 a below inflation target.
And why haven't the other bands been increased (SRA, PSA, DA)?0 -
It only requires annual inflation of 2.85% to make that £12,500 a below inflation target.
And why haven't the other bands been increased (SRA, PSA, DA)?
Because we need to get the debt down. :rotfl:
May 2010 when good old George became chancellor - UK debt was 894 billion.
Today - 1.64 trillion.
Yep - good old George is responsible for 45% of UK's total debt - ever! Thank goodness we had austerity! Otherwise what would it have been ?0 -
I see a lot of paperwork for accountants who have lots of freelancers/contractors on the books next year as they all start switching onto the standard VAT scheme after today's announcement.
Needless to say I'm unhappy about the additional admin burden. I think I know why this change has been made and yet again freelancers and small businesses are caught in the crossfire.
Thankfully I don't generally work for public sector clients either, with these changes to IR35 that the government seems intent on pushing through...0 -
[quote=[Deleted User];71658938]Because we need to get the debt down. :rotfl:[/QUOTE]
Huh! Bring back Rooker/Wise.0 -
@TheCyclingProgrammer:
1. It is totally inappropriate for HMT to describe my clients who happen to buy little in the way of VATable goods as being aggressive abusers by their legitimate use of the FR scheme.
2. Lets see how they legislate for this - and how the "easy-to-use online tool that will help determine whether they should use the new rate" works out - if it works at all0 -
Typical. HMRC set the wrong FRS rates and then blame businesses for using them, even going as far as to say it's abuse. No it isn't abuse - it's using the rates applicable for their business type as specified by HMRC using a scheme well publicised by politicians and HMRC as a business incentive. How on earth can that be abuse? They've lost the plot. All they needed to do was to re-adjust the rates for certain types of business. Yet another case of throwing the baby out with the bathwater!0
-
@TheCyclingProgrammer:
It is totally inappropriate to describe businesses which happen to buy little in the way of VATable goods as being aggressive abusers by their legitimate use of the FR scheme.
I feel the same.
Yes, I'll switch over the standard VAT scheme and I'll get used to the additional burden of making sure all of my expenditure is covered by a valid VAT receipt and the extra admin etc.
But I seriously resent the underlying implication that just because certain sectors typically made a small profit from the scheme as a result of the way it works that we were all "aggressive abusers". If a sector was routinely making a profit from the scheme then the government could just as easily tweak the rate by 0.5-1% to balance it out.
I'll be the first to admit that as a software consultant/developer my overheads are relatively low - but then that's the point of having different flat rates for different sectors isn't it? I still do have costs, but because my costs are mostly services (accountancy fees, software, web hosting etc.) and most hardware I'd buy would be treated as a capital purchase then I'm deemed to be a "limited cost trader" even though my costs could be higher than somebody who just buys widgets.I'll bet one thing - that the legislation which eventually emerges will create a serious opportunity for work-around developers.
Cue more petulant screams of "B*****ds!" from HMT!
Maybe. I've no interest in clever workarounds - and I'm sure some people will try and be inventive - I'm just going to switch to the standard scheme and be done with it.
My suspicion is that this has come about because of stuff like this:
https://www.theguardian.com/uk-news/2016/nov/15/revealed-temp-agencies-avoidance-scheme-costs-taxpayers-hundreds-of-millions0 -
Hi
Can i ask what is changing with the VAT Flat Rate Scheme ?
I am a self-employed courier, and currently on FRS.
Thanks0 -
Hi
Can i ask what is changing with the VAT Flat Rate Scheme ?
I am a self-employed courier, and currently on FRS.
Thanks
It's effectively been made financially unviable for anyone with whose overheads mainly consist of services rather than goods.
https://www.gov.uk/government/publications/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note0 -
Thanks TCP
To be honest i had a skim read through info in your link, but i dont really understand it. Will have to ring the help line.
Currently i receive 20% VAT on top of my invoices ( from Hermes )
and my VAT rate is 10% ( for couriers ) - am i likely to be affected by the planned changes ?0
This discussion has been closed.
Categories
- All Categories
- 343K Banking & Borrowing
- 250K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards