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Spring Budget 2017


Lloyd90
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Yep!

Won't benefit ordinary working bods!

 

Increase of the tax free allowance projected to make £11,500 and possible increase of the 40% threshold to £47,500 would I imagine put some money in the pockets of 'ordinary working bods'.

 

I do agree it probably won't make a significant difference but still.

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Drop in tax free allowance from £5k to £2k on dividends is fairly significant.

 

Quite a stand up routine the honourable gentleman has going, quite a few jokes being thrown at Corbyn. He doesn't look impressed... tough crowd!

Yes and a 2% rise in NI for the self employed. Clamping down on those going self employed just to avoid tax I think.

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Yes and a 2% rise in NI for the self employed. Clamping down on those going self employed just to avoid tax I think.

About time too. Thousands have opted to do the same job as they did as a full time emplyee to save a fortune on tax.

They tried to sell it to me too.

Edited by Paul1440
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About time too. Thousands have opted to do the same job as they did as a full time emplyee to save a fortune on tax.

They tried to sell it to me too.

It's become a bit of a plague. A lot of companies across many sectors have started to push people down this route. It is a 'win-win' for employee and employer. The only loser was HMRC.

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It's become a bit of a plague. A lot of companies across many sectors have started to push people down this route. It is a 'win-win' for employee and employer. The only loser was HMRC.

No the self employed still looses because there is no pension input from the employer, no sick pay, no Holliday pay, no maternity or paternity pay, no employee's rights regarding dismissel etc etc. To make it about equal the person would need approximately 25% more take home pay. With the extra 25% they could use half of it for the months holiday they lose and the rest towards some sort of pension.

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No the self employed still looses because there is no pension input from the employer, no sick pay, no Holliday pay, no maternity or paternity pay, no employee's rights regarding dismissel etc etc. To make it about equal the person would need approximately 25% more take home pay. With the extra 25% they could use half of it for the months holiday they lose and the rest towards some sort of pension.

From what I have seen and heard from colleagues 'day rates' for contract staff more than make up for the loss of benefits you mention. It needs to be attractive to the 'employee' otherwise why would they bother?

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It's become a bit of a plague. A lot of companies across many sectors have started to push people down this route. It is a 'win-win' for employee and employer. The only loser was HMRC.

The companies are doing it to avoid employers liabilities not to benefit the employee. Its not a win for the employee in the long term, when they lose all their rights, can't get mortgages etc

 

The short term gains always look attractive, but then they would

Edited by Vince Green
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I think he was referring to a self employed person like an electrician, of whom there are millions, someone who is truly self employed and relying on himself and his wits 100% every day.

I was, day rate in the building trade is probably the most overpaid and abused system there could be.

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The companies are doing it to avoid employers liabilities not to benefit the employee. Its not a win for the employee in the long term, when they lose all their rights, can't get mortgages etc

 

The short term gains always look attractive, but then they would

It's not always companies that are pushing employees down this route. I know quite a few people who have asked to leave 'employment' and rejoin as a 'contractor'.

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To be fair, those in your game are quite a bit different to small business, self funding, self-employed people. For a start the renumeration annually is substantially less for most (see almost all) other sectors. When you're already operating and surviving on small margins I don't think this is a great move. No sick pay, no holiday pay, no guaranteed minimum wage, you can't really up your rates to compensate for the increase and for most sectors there isn't a substantial 'increase' in rates between those doing the job as employees as opposed to those self employed.

 

Whichever way you look at it its a bad move for the small, independent and genuinely self-employed and one that won't play well when election time comes around.

 

Close the loophole to those abusing the system by all means, but to punish all those that genuinely work for themselves seems a bit too much stick and not enough carrot.

Edited by mick miller
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