So Personal Allowance and Basic Rate tax is frozen until 2028 - thanks for the stealth tax
This isn't new? I'm sure it was publicised in November last year similarly to when the planned and short lived NI increase was reversed.
Spring Budget 2023
- Thread starter doodah
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This isn't new? I'm sure it was publicised in November last year similarly to when the planned and short lived NI increase was reversed.
Caporegime
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Caporegime
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Not really. Outside IR35 contractors still pay a crap load of tax. More than a permie.
Yea if u only take home 7.5k a year to your personal account from your business account then yea you pay little tax lol
The erosion of personal alllowances for dividend tax, the increase in dividend tax and corporation tax that's just coming in makes contracting financially not quite as good as it was (not sat down and worked out the current state of play between staff and contract for a while).
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It has gotten progressively worse.
It’s as if the UK Gov are doing there best to basically end contracting as we use to know it and force everyone to just become perm staff.
That's the thing, things get said and reversed.
Yup, I've paid nearly £40k so far this tax year in tax & NI, when I was contracting that figure was closer to £50-60k. I'm probably better off now too.
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Show me how it’s more than a normal employee at the same level of income, i’ll give you a 20% head start for employee benefits.
Regardless, contracting these days is different to the 2000’s, not worth the hassle for employers, and what I guess you want is tax breaks meant to encourage businesses to create employment but just for yourself in your “company”. Just move with the times. If you want to make serious money in that game you’d set up a consultancy and actually employ people that get “contracted out”. I know a few who’ve made a fortune that way. As for the Indian work visas (what you voted for? Apologies if not) they may or may not happen.
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We don’t need it, the world has moved on. There are much better and cheaper options than the contract world of old.
Contracting always felt a "make hay whilst the sun shines" kind of decision IMO. You can make significantly more "jam tomorrow" as a permie now, especially with the LTA changes...
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Sub contract the code out to Hungary or other cheap places and pass it off as your own. Whilst milking a second and/or third contract doing remote work for 'projects'.Plus, less code needs to be written and we’re all better at planning
If you're in a position to do so, making additional pension contributions and claiming pension tax relief as a higher rate tax payer is one of the best ways to reduce the amount of tax you pay.
The increase in the annual allowance from £40-£60k helps this even further.
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I”ve got nothing against how others may work, make the most of it! It’s this wierd “I’m an entrepreneur” schtick I don’t get, they don’t deserve or need tax breaks that are there to encourage job creation rather than just “plus dosh”. That died a while ago.
Yeah, I am putting in as much as I can whilst still being able to pay bills and live life. It's a fine balance, especially with a child and the 60% tax rate.
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That's not a bad idea. But again I would need a outside ir35 contract role for that so I can sub contract the work to someone cheap down Hungary or India as you say.
I'll just attend the daily meetings and that's that. An hour days worth of work for me lol
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If you can still get a good rate as a outside ir35 contract then it's still good to.
I personally like doing different projects a year or so and not get stuck working with the same people and same company for years
If under IR35, you can't take more than one contract? I quit contracting in 2019, so no idea how it works, obviously I know a pandemic was coming and perm would be the safer option.
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Outside ir 35 you can take more than one contracting.If under IR35, you can't take more than one contract? I quit contracting in 2019, so no idea how it works, obviously I know a pandemic was coming and perm would be the safer option.
The thing is, contracting is also a benefit for a company or client.
The client doesn't pay for holidays or sick leave or pension or national insurances on me as a contractor and a lot of projects in its infintry are ideal for contractors to jump on board and get the project going. If the project fails they can get rid of contractors easily but if done by perm staff, it's a bit more hassle.
Tdlr if a client wants to create a risky project, then a contractor is the best way
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