The budget

[hammers4spanner]

So what's happened with this tax lark ?
Do us soke traders need more cash jobs now ?

 

[joni os]

Go with the flow:- Have a zero hour contract with the taxman.

 

[SimonG]

No extra cash jobs. We are business men. The choice now is do we absorb the projected 60 pence a week or pass it on in our hourly rate. Simple business decision.

 

[gassafe]

No extra cash jobs. We are business men. The choice now is do we absorb the projected 60 pence a week or pass it on in our hourly rate. Simple business decision.

Some are saying it's 60p a week others are saying it'll cost 240 quid extra per year!

 

[gassafe]

No extra cash jobs. We are business men. The choice now is do we absorb the projected 60 pence a week or pass it on in our hourly rate. Simple business decision.

Some are saying it's 60p a week others are saying it'll cost 240 quid extra per year!

 

[rpm]

Being a % it will vary from business to business depending on your turnover.

 

[Chalked]

If you made 35, 000 profit, the first 10,000 is free. But it will cost 2% of 25,000- so £250.
Don't know where they are getting the 60p a week from.

The main one that affects me as a ltd co is the reduction from £5000 to £2000 tax free dividends. There's £600 lost!
Looks like being ltd is getting very close to sole trader.

Will need to add 50p an hour to cover that cost. ( works out @ 42.5p)

 

[Chalked]

Duplicate post!

 

[SimonG]

60 pence or a fiver a week, still needs you to make a business decision.

 

[woodsy]

If you made 35, 000 profit, the first 10,000 is free. But it will cost 2% of 25,000- so £250.
Don't know where they are getting the 60p a week from.

The main one that affects me as a ltd co is the reduction from £5000 to £2000 tax free dividends. There's £600 lost!
Looks like being ltd is getting very close to sole trader.

Will need to add 50p an hour to cover that cost. ( works out @ 42.5p)

Totally agree, in same boat myself and reckon his little stunt has cost me £800 plus. So much for encouraging the small business man. Makes you feel like wrapping up the Ltd co, deregistering for vat and carrying out more cash jobs rather than trying to be above board.

 

[woodsy]

If you made 35, 000 profit, the first 10,000 is free. But it will cost 2% of 25,000- so £250.
Don't know where they are getting the 60p a week from.

The main one that affects me as a ltd co is the reduction from £5000 to £2000 tax free dividends. There's £600 lost!
Looks like being ltd is getting very close to sole trader.

Will need to add 50p an hour to cover that cost. ( works out @ 42.5p)

Totally agree, in same boat myself and reckon his little stunt has cost me £800 plus. So much for encouraging the small business man. Makes you feel like wrapping up the Ltd co, deregistering for vat and carrying out more cash jobs rather than trying to be above board.

 

[mfgs]

Its very frustrating that they seem to want to target the small businesses out there for extra revenue when its public knowledge that all big companies are avoiding tax. The big companies can afford very good lawyers who will tie up HMRC with mountains of paperwork so they go for the easy target like us.

They seem to want to bring self employed people in line with employed people for taxable contributions while not taking into account the downsides like no paid holiday, no sick pay, no pension etc

 

[mfgs]

Its very frustrating that they seem to want to target the small businesses out there for extra revenue when its public knowledge that all big companies are avoiding tax. The big companies can afford very good lawyers who will tie up HMRC with mountains of paperwork so they go for the easy target like us.

They seem to want to bring self employed people in line with employed people for taxable contributions while not taking into account the downsides like no paid holiday, no sick pay, no pension etc

 

[REDSAW]

big companies use tax avoidence, think we should up the price by a fiver an hour and cash in-hand avoidence a bit more! lol

someone told me you can claim sick pay as self employed from benefits office?
if so, a week free holiday should ballance the extra increase.

 

[oz-plumber]

They seem to want to bring self employed people in line with employed people for taxable contributions while not taking into account the downsides like no paid holiday, no sick pay, no pension etc

If you're self employed and not charging yourself out at a rate that would cover the cost of employing someone, you're doing something wrong.

In other words, if you employed someone, you would have to include in the hourly rate all that you mentioned above.

If you can't charge yourself out at a minimum of 30% over what an employee would cost you, up your rates or become an employee.

Why work for yourself if you can't make the same wages and benefits you would get as an employee + profit on top for your employer.