Spring Budget 2017

ChrisD. · 8 Mar 2017 at 15:54

But the person is not paid £50 an hour, his company is. Christ, if I got my hourly rate direct into my bank I'd be laughing.

Spook187 · 8 Mar 2017 at 16:04

The Tories we are the party for the NHS lol don't make me laugh, pure lies.

Cosimo · 8 Mar 2017 at 16:08

Did I miss something today.

do_ron_ron · 8 Mar 2017 at 16:09

Spook187 said:
The Tories we are the party for the NHS lol don't make me laugh, pure lies.

As well as the Party of the working class we are now told. Orwellian.

touch · 8 Mar 2017 at 16:43

Greebo said:
NI UP tenfold

Sui said:
Isn't it only going up 1%??

Uther said:
9% to 10%.

That's a "tenth"*, not "tenfold".

*a ninth rather than a tenth, but I guess "tenth" and "tenfold" were the words you mixed up.

Greebo · 8 Mar 2017 at 17:12

touch said:
That's a "tenth"*, not "tenfold".

*a ninth rather than a tenth, but I guess "tenth" and "tenfold" were the words you mixed up.

I blame the budget stream. They posted that NI was going up from 1% to 10% hence me saying tenfold. I am sorry for reporting misinformation but thanks for trying to educate me. :rolleyes:

FrenchTart · 8 Mar 2017 at 17:18

Brexit discussion in the Brexit thread only please.

Battery! · 8 Mar 2017 at 17:31

ChrisD. said:
But the person is not paid £50 an hour, his company is. Christ, if I got my hourly rate direct into my bank I'd be laughing.

It's pointless trying to explain this to people, along with the fact we pay corporation tax and VAT.

Vonhelmet · 8 Mar 2017 at 17:36

Battery! said:
It's pointless trying to explain this to people, along with the fact we pay corporation tax and VAT.

The effective rate of tax can be way lower for people operating through a personal service company, though.

I'm a chartered tax advisor, so I would know.

TBirdUK · 8 Mar 2017 at 18:23

jeez, lots of going on about a small increase in NI, I work in the public sector and on top of numerous 0% pay rises (5 years worth) they hit us with a loss of the abated NI rate (which they previously used to justify other cuts) which cost me an extra £60 per month less in my pocket. I think this budget was a bit lame and they are struggling to find something to focus on!

mattyg · 8 Mar 2017 at 18:26

Double the cost of cigs...Oh they can't really do that because they don't actually want you to quit. They'll have to tax another area to cover the loss

SPG · 8 Mar 2017 at 18:29

I am all for it.

Self employed should pay the same NI as everyone else.

Destination · 8 Mar 2017 at 18:49

Goksly said:
They already get compensation for that... getting "paid" £50+ph and then wangling the system to pay tax on only £7.50 of that when a normal employed person might get £20ph is taking the...

Do you mean contractors running their own limited company?
As many folks will be a sole trader, and not in a contractor situation.
They can't wangle anywhere near what you think.

Can you define this wangling by a sole trader?

Destination · 8 Mar 2017 at 18:52

Vonhelmet said:
The effective rate of tax can be way lower for people operating through a personal service company, though.

I'm a chartered tax advisor, so I would know.

Figure me this, they claimed it will cost people on average 60 p per week.
How on earth are they arriving at that figure, my understanding that 60 p additional taxes, gives a national insuranceable amount of £60 per week, so £3000 a year, meaning someone is earning £11000 or so?
Is that what they are saying the average self employed person is earning? As that figure smells like utter toss to me.

Tunney · 8 Mar 2017 at 19:12

Hikari Kisugi said:
Is that what they are saying the average self employed person is earning? As that figure smells like utter toss to me.

I'm sure a lot of technically self-employed workers like cleaners and Uber drivers don't earn much. I wouldn't be surprised if the median wage is near £11k.

Mr Jack · 8 Mar 2017 at 19:13

Hikari Kisugi said:
Figure me this, they claimed it will cost people on average 60 p per week.
How on earth are they arriving at that figure, my understanding that 60 p additional taxes, gives a national insuranceable amount of £60 per week, so £3000 a year, meaning someone is earning £11000 or so?
Is that what they are saying the average self employed person is earning? As that figure smells like utter toss to me.

Maybe they're counting in Osborne's cancellation of Class 2 NICs?

kitch9 · 8 Mar 2017 at 19:15

Vonhelmet said:
The effective rate of tax can be way lower for people operating through a personal service company, though.

I'm a chartered tax advisor, so I would know.

Not really, not anymore. I run a small business and I'm going to have to lay someone off to keep my earnings the same to pay the additional tax.

Vonhelmet · 8 Mar 2017 at 19:46

Hikari Kisugi said:
Figure me this, they claimed it will cost people on average 60 p per week.
How on earth are they arriving at that figure, my understanding that 60 p additional taxes, gives a national insuranceable amount of £60 per week, so £3000 a year, meaning someone is earning £11000 or so?
Is that what they are saying the average self employed person is earning? As that figure smells like utter toss to me.

£11k doesn't sound at all unreasonable.

Vonhelmet · 8 Mar 2017 at 19:50

kitch9 said:
Not really, not anymore. I run a small business and I'm going to have to lay someone off to keep my earnings the same to pay the additional tax.

If your business is big enough to employ other people then you are not the average self employed person.

Destination · 8 Mar 2017 at 19:55

Vonhelmet said:
£11k doesn't sound at all unreasonable.

As an average for the self employed across the entire nation?
Isn't the 'average' wage more than double that?
IF self employed take home half the average wage I don't see how he can justify taxing them more (not that I think they do) just think they are pulling a 60p from their holes.
I doubt that can be accurate.