Crackdown on personal service companies could raise £400m in tax

[MicrosoftBob]

All this is pissing in the wind. 1992, 2001, 2008 economic cycles of 8-10 years.

There is nothing, NOTHING in the kitty for the next crash. Which might be next month or next year. But likely to be soon.

What happens then?

Probably a war to divert attention from the state of the economy

[lilelvis2000]

Labour were not and certainly not now, committed to eliminating the deficit. Socialist's like to like in a dreamy world were no-one is told NO. The Tories have always had to mop up the mess left by every Labour government, ever.

The current government has reduced the deficit very slowly, it has only halved in 5 years, we still have £70 billion to go and it is hoped that it will be gone by 2020.

The 50% tax rate did not raise any tax and in fact harmed the economy, it should be reduced to 40% asap to encourage enterprise.

[DimPrawn]

Surely it's all somehow Maggie's fault?

[PurpleGorilla]

I have to say I am quite anxious about the forthcoming budget, can Osborne really be stupid enough to kill the contractor market?

[DimPrawn]

I have to say I am quite anxious about the forthcoming budget, can Osborne really be stupid enough to kill the contractor market?

For some hefty Conservative Party donations from big IT bodyshops, of course.

[PurpleGorilla]

For some hefty Conservative Party donations from big IT bodyshops, of course.

My line of business is engineering rather than IT.

[NigelJK]

But they did care about BTLers... oh wait - a bunch of MPs are also landlords!!!

There are quite a few who also run ltd co's and pay themselves divi's.
Might be prudent to find out what these are doing in light of the divi changes.

My own take is that if HMRC wants to play hard ball (funded by Crapita et al) then so can I. I don't have to worry about pheonixing a ltd co and pay no tax.

[LondonManc]

My line of business is engineering rather than IT.

That's as maybe, but Osborne's donators won't care; they want IT contracting killed off. You're what the US Army refer to as collateral damage.

[DaveB]

If you haven't already signed up to this

http://forums.contractoruk.com/futur...r-shafted.html

Go and do it NOW!

The more people who sign up, the bigger the impact we will have on social media during the Autumn Statement, the more likely that people will actually take notice.

[d000hg]

I have to say I am quite anxious about the forthcoming budget, can Osborne really be stupid enough to kill the contractor market?

I don't think it would kill it. And even if it did, the idea we'd all be replaced by big consultancies at our clients is ludicrous. SMEs simply don't have the interest in using such big consultancies. Companies would simply struggle on without using contractors in the worst case.

Or maybe agencies will effectively become consultancies?


How are umbrellas affected by all this by the way?