1st April tax changes.....

colinuk

colinuk

colinuk

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Joined
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1st off let me say ROBBING SODS!!!! /rantover lol...

I believe if the paper in the gov goes through, mileage and food allowance for contractors is being scrapped. Im 95% certain this will happen and will take about £250 of my wage that i get for tax free as a contractor back to the tax man so they can tax em even more money...

anyone else in the same posistion? what are you doing about it. The umbrella corp im with are looking to do a new type of account, i think its a hybrid of umbrella/lmt company to try and get round it.

How hard is it to set up and run my own company.

do i need an accountant as some say or go it alone?

cheers for reading :)

Colin
 
lets be fair though why should there be a difference between contactors and everyone else ?
 
We dont get holiday pay or sick pay for one. Yet now [ 1st april] we pay the same tax as the people who do.....

but i am biased lol...
 
All that will happen is contractors wil move from umbrella corps and move into limited companies, this actually allows us to get more tax free benifits. If they left us alone they would infact get better tax/pound then what they are doing now, but i guess they can make figures say anything they want when it comes to getting votes...

Yes we get paid more, but not that much more, not me or 90% of contractors i know. Maybe 25-40% more than perm staff, but that was to cover holidays and sick pay. now we lose that as well. From the day IR35 came in, i should have gone off shore company lol....

anyone else got a say?

colin
 
They're just closing a loophole thats been abused. Most of us don't have our food and travel to work to paid for by our employers, so why should you expect a tax write off against it?
 
Typical Labour. It sounds great that they're closing a loophole, but in doing so they are opening another one, and I'm willing to bet anything there will be long term negative consequences they haven't considered.

Why can't they do something positive, like offer non-homosexual, non-immigrant, non-muslim, white middle-class couples tax relief? *

* Yes, I'm joking.
 
colinuk said:
1st off let me say ROBBING SODS!!!! /rantover lol...

I believe if the paper in the gov goes through, mileage and food allowance for contractors is being scrapped. Im 95% certain this will happen and will take about £250 of my wage that i get for tax free as a contractor back to the tax man so they can tax em even more money...

anyone else in the same posistion? what are you doing about it. The umbrella corp im with are looking to do a new type of account, i think its a hybrid of umbrella/lmt company to try and get round it.

How hard is it to set up and run my own company.

do i need an accountant as some say or go it alone?

cheers for reading :)

Colin
Click to expand...
Another easy target for labour in order to help finance their colossal overspending policies. The net is tightening on everyone.
 
I used to contract - I now just "have a job".
It is about time the loopholes were closed and contractors started paying the same amount of tax as all of us.
Sure you don't get holiday pay, however you can charge a lot more for your hourly rate so you can soon make up for that.
Of course you get holidays - you can have as much holiday as you like, you just don't get paid for them.
 
yes the new rules suck, I don't mind so much the fact that food and travel can't be claimed, I hate IR35 that prevents you taking a low salary and the rest as dividends.

Any how, head over to http://www.contractoruk.com and check out the forums. Be warned, they are full of people with "issues" who won't hesitate to get down your throat if you haven't read ans searched both the website and the forums (both excellent).

Some great accountants on there who are recommended for running your LTD company etc.

TM
 
Well, fair enough about paying taxes. cant argue with that.

Makes me laugh when companies say they cant get good IT staff lol... wonder why, maybe if they paid for the knowledge they would get better results.

Still, like everyone else i guess, paying tax is never nice and when they close a way that you can stop paying over the odds, its never nice.

I dont think who ever put this forward has thought it through. But again being a contractor im biased about this and know it.

colin

PS - cheers TM, you must have posted as i was writing.
 
branddaly said:
They're just closing a loophole thats been abused. Most of us don't have our food and travel to work to paid for by our employers, so why should you expect a tax write off against it?
Click to expand...
That's absurd though. If I'm sent to a customer site on company orders then I shouldn't have to pay any of the costs - fuel, mileage, hotel/food.

It's totally ridiculous.

Not that it should bother many contracters - they'll just up their prices.
 
NathanE said:
That's absurd though. If I'm sent to a customer site on company orders then I shouldn't have to pay any of the costs - fuel, mileage, hotel/food.
.
Click to expand...


Now if contractors had only been claiming like that, there wouldn't have been a problem. But all these umbrella companies had them claiming everything. Hence the new clamp down.
 
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