Tax drop

csmager said:
It doesn't matter what the contract says, if you meet the tests that class as being employed rather than self employed (e.g. do you have to work set hours? are you told what to do? Are you obliged to do anything you are asked? Is the 'employer' obliged to give you work? etc), then HMRC can decide you're actually employed and tax you accordingly - and backdate it. This is usually the case when despite being 'self-employed', you just work for 1 person/company. Lots of folk came went away on Friday employed and came back to their desks on Monday as self-employed consultants. Absolutely nothing had actually changed though - except the amount of tax they paid.. Hence IR35.
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Yep, my father got sharfted by IR35, and he was doing something similar to what photoshop is doing. I think there's little or no way round paying standard income tax for contractos now.
 
drunkenmaster said:
well done for knowing nothing whatsoever about the economy.

Countries slipping into debt, we have increasing tax's, quite significantly year to year mostly through secondary hidden tax's, and we are fighting unemployment by adding public sector jobs every year which are paid out of tax. those jobs generate no money. a strong economy has industry which brings raw materials in, turns that into something and exports that to generate money. WE are doing this less and less every single year with basicaly zero new industry coming here. every new factory for car's, computer parts, electronics, furniture, clothing is being made elsewhere in the world as theres zero incentive to bring business here. Our education system is getting worse and attracting less people to come here, massive amounts of skilled work is being outsourced as you have cheap crap labour here now. people will pay higher wages for highly skilled workers, but from a point ofhaving highly skill highly educated people here even 10 years ago its changing massively. UK people seem to ignore it but the rest of the world is changing. We are riding a strong economy that is failing, if we don't fix it soon it will become incredibly weak incredibly quickly.

how do you think we will stay in a decent position when basically everything we buy and use in life is produced in asia. you can not have a strong economy if you're entire economy is based on selling items imported from other countries. WE have a very small country with limited natural resources to make money from, theres little reason to buy smallish quantities of metals/rocks or whatever from the uk when russia or anywhere else in the world can sell you the same stuff cheaper. we have limited oil supplies. What does the uk produce that other people in the world require massively? We have to encourage industry to come back to the uk, but for 20 years we've ignored the fact that we don't produce anything anymore.
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Manufacturing is less important to our economy now, as you have described. We cannot compete at this level with countries like China and India, where rates of pay are very low. So we have adapted to becoming a skilled service economy. If we had not adapted, we would have been forced to adopt some kind of protectionist system in order for manufacturing to survive, or else get rid of the minimum wage, neither of which are acceptable options for obvious reasons. Our economy is growing steadily: although it has its problems, focusing just on manufacturing (which IS extremely important, particularly for developing countries) is far too simple a way of looking at an extremely complex situation.
 
Bigstan said:
What specifically makes you say the country is finished?

Have you actually checked the economic situation in Australia?

They've just had a hike in interest rates and inflation was 3.8% in December, ours was 2.2%.

Under current income tax rates on a salary equivalent to £40,000GBP (approx $85,000AUD) you would pay $21,500AUD (= £10,000GBP) in income tax. In the UK, you would pay around £7,000GBP.

Those are just a few quickly Googled figures.

Still think Australia is the promised land or does the UK not look too bad after all?
I think I'll stay here where I was born and brought up and try to help my fellow citizens and support the country I was born in.
If you want to run away because you can't get everything your own way, it's probably better for us all if you go.

Bye bye (don't forget to pay your taxes before you go) :)
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I have paid enough tax to this government, tax that in my opinion has been mismanaged and spent badly, rest assured though, I won't forget to pay.

I have family that have moved out to Australia. The cost of living and the quality of their lifestyle has made me evaluate the situation that I am in. I'm also fed up to the back teeth of being ignored by this government.

The cost of living in this country is getting higher and higher. None of the wages of mine or my work colleagues friends or families are increasing with the rate of inflation which is making it harder year by year to climb the next step.

For all the taxes we do pay what do we get in return. High crime, poor public services.. etc..

I could go on but I'm fed up moaning about it, I'm going to do something pro active..

But before I go I want to challenge your assertion of Britain being better off for me going... I think you are wrong.

I'm in my 30's I have worked since leaving school and I had a son when I was 18. Unlike many, my partner and I have stayed together and my son is a very well rounded and thoroughly decent individual who is a credit to his school and our community. I have never drank, I don't smoke, I have never taken drugs, I have never been in trouble with the law and I regard myself as being a decent person who would go out of his way to help someone in need.

Most of the other Ex Pats of the UK are the same, decent people who want a fresh start and live somewhere safe for themselves and their children. A lot leave because they like the idea of the living in the sun too, but thats just a bonus!!

I'm not running away Stan, I'm having a look at my options and will have a lot of work to do before I would be able to emigrate, but if the opportunity came up, I wouldn't run, I would sprint!!
 
-|ScottFree|- said:
But before I go I want to challenge your assertion of Britain being better off for me going... I think you are wrong.
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I may well be wrong - it has been known to happen ;) but I'd like you to point out why I'm wrong.

Can you show me what is better about living in Australia than living here?
I've already pointed out that they have a higher inflation rate than us and the level of income tax on a decent salary is considerably higher than ours so what do they have to offer that is sufficiently more attractive than the UK to encourage you to uproot from the country you were born in (and presumably, where most of your family lives)?

Are you likely to find a more satisfying job there? Will you be able to buy/rent a better house there for what you earn? How far will these factors go to offset the higher taxation and inflation/interest rates?

PS: Don't cite the weather as a selling point, I'm Scottish and the sun melts me :p
 
don't want to get into the economics of everything, but do not for one moment believe that inflation in this country is 2.2% because it is a hell of a long way OVER that.
 
The Deuce said:
don't want to get into the economics of everything, but do not for one moment believe that inflation in this country is 2.2% because it is a hell of a long way OVER that.
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Surely the inflation rate depends on what you are measuring?
The goods measured for the CPI inflation rate are increasing at a combined rate of 2.2%.

You may argue that these goods don't represent a typical family's expenditure, but this is a different thing to saying inflation is not 2.2%
 
The Deuce said:
don't want to get into the economics of everything, but do not for one moment believe that inflation in this country is 2.2% because it is a hell of a long way OVER that.
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My penis "is a hell of a long way OVER" 10" but without proof, my claim is utterly pointless ;)
 
Simon said:
Anyone know of an online calc that will tell the difference between this year and next year? I normally use listentotaxman but it hasnt updated with the 08/09 year yet/

Also i assume bonus's also go onto the tax code as if you have earnt it? 40% :(
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The tax brackets for 2008-09 haven't been set yet, they usually come in the March budget.

To compare the two, stick these into excel:
(I've used the current brackets for 2008-09)

Tax 2007-08
Code: 
=223+IF([COLOR="Red"]x[/COLOR]>34600,(7121+(([COLOR="red"]x[/COLOR]-34600)*.04)),([COLOR="red"]x[/COLOR]-2230)*0.22)
Tax 2008-09
Code: 
=IF([COLOR="red"]x[/COLOR]>34600,(6920+(([COLOR="red"]x[/COLOR]-34600)*.04)),([COLOR="red"]x[/COLOR]*0.2)

where x is your income less personal allowance.
 
WillyNelson said:
The tax brackets for 2008-09 haven't been set yet, they usually come in the March budget.

To compare the two, stick these into excel:
(I've used the current brackets for 2008-09)

Tax 2007-08
Code: 
=223+IF([COLOR="Red"]x[/COLOR]>34600,(7121+(([COLOR="red"]x[/COLOR]-34600)*.04)),([COLOR="red"]x[/COLOR]-2230)*0.22)
Tax 2008-09
Code: 
=IF([COLOR="red"]x[/COLOR]>34600,(6920+(([COLOR="red"]x[/COLOR]-34600)*.04)),([COLOR="red"]x[/COLOR]*0.2)

where x is your income less personal allowance.
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Thanks, are the numbers total amount of tax for the year?

Im £32 a month better off if so.
 
csmager said:
It doesn't matter what the contract says, if you meet the tests that class as being employed rather than self employed (e.g. do you have to work set hours? are you told what to do? Are you obliged to do anything you are asked? Is the 'employer' obliged to give you work? etc), then HMRC can decide you're actually employed and tax you accordingly - and backdate it. This is usually the case when despite being 'self-employed', you just work for 1 person/company. Lots of folk came went away on Friday employed and came back to their desks on Monday as self-employed consultants. Absolutely nothing had actually changed though - except the amount of tax they paid.. Hence IR35.
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well, i work the hours i want to work, im not entered in the flexi-system, i take days off without consulting any staff, i work from home if i want to, i use my own mobile, my own car, my own laptop etc etc

Just some of the things that differtiates me from permy staff
 
No good to me - I earn less than £9k after tax.

But I have been made redundant as of 21st March, so I'll be scratching around for any work I can find!

David
 
I was under the impression that the tax bands were restructured in the last budget to come into enforcement in the new tax year... They were removal of the 10% tax bracket, 22% tax bracket was lowered to 20% and the higher tax bracket stayed at 40%

So basically now everyone that gets paid up to the higher limit of £38000 has a personal allowance of £5,435 and is taxed 20% and above £38000 is taxed at 40%...

Have i got this completely wrong???
 
Stinky said:
rubbish.

so now my 9k a year will be even less take home :(
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Is that retail? Trying to work out what type of jobs pay in this range, from my rough calculations a 37.5hour week at £5.50 would add up to more like £10.5k?
 
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