Budget

[Lazarus]

Looks like Brown is having a departing "ramit up their arse" for most folk.

http://news.bbc.co.uk/1/hi/uk_politics/6474997.stm

#
CIGARETTES AND ALCOHOL

# Beer will rise by 1p a pint from midnight Sunday, cider by 1p a litre, wine by 5p a bottle and sparkling wine by 7p. Duty on spirits will be frozen.

# Cigarettes to rise by 11p a packet. VAT on nicotine patches and similar products to be cut from 17.5% to 5%.

TRANSPORT

# Fuel duty up 2p per litre from October, in line with inflation.

# Putting VAT on airline tickets ruled out.

# Road tax on highest-polluting vehicles up to £300 and to £400 from April next year.

# The least-polluting vehicles to have their duty cut to £35.

anyone know what the limits are for "highest polluting"

 

[Draylor]

anyone know what the limits are for "highest polluting"

Low.

See http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524 theres a link at the side to get those values from make/model details.

 

[Lazarus]

thanks draylor.

I have an older car (1996). That webby shows for cars registered after 2001 or 2006.

How would I find about the older generation cars>

 

[Will]

Older cars are based on engine size, not emissions. See the first table (TC11) for the prices.

 

[Will]

And bah, a Labour budget that increases tax for the highest and lowest incomes, and gives a tax break for the middle earners.

 

[Skyler]

Just for votes of course, fuck Labour, and fuck Gordon Brown!

Vote Conservative, they will probably make loads of stupid decisions as well, but two terms is the max anyone should get and after recent years the Conservatives will be out to impress I'm sure!

 

[Will]

Its pretty much the way New Labour works. Your old school socialists will never vote Tory, they are safe votes. So you need to steal as many Tory votes as possible, with moves like this. The Tories are playing the same game at the moment, trying to steal Labour and Liberal votes, with green policies, claiming to be the party of the NHS, etc etc.

Like the party in power will actually ever make any difference at all, when you can hardly tell the difference between them.

 

[Marc]

And bah, a Labour budget that increases tax for the highest and lowest incomes, and gives a tax break for the middle earners.

The highest earners will be just aswell off, especially the large limited companies. Its the low earners who will be hardest hit with the scrapping of the 10% tax rate

 

[mycenae]

the NHS needs some help.....many of the people i work with in my hospital are fearing the NHS will have been scrapped this time next year!

 

[yaruar]

The highest earners will be just aswell off, especially the large limited companies. Its the low earners who will be hardest hit with the scrapping of the 10% tax rate

It's missle earners who lose out from that though, well more like gain less. The figures are that percentage wise people earning less than 10k gain most relatively, followed by those in the existing higher tax bracket and the middle earners gain the least (in income tax terms anyway i think i will gain about 100 a year whereas someone earning less than 10000 or more than 34000ish will gain approx 200 or slightly over. Although that's ignoring fag tax and booze tax which will disroportionately hit the poor.

 

[Embattle]

I don't understand why people get so upset with budgets, it isn't as if you couldn't of predict most of the changes that happened......no matter who is in charge of the books.

 

[Scouse]

I don't understand why people get so upset with budgets, it isn't as if you couldn't of predict most of the changes that happened......no matter who is in charge of the books.

Mainly because it makes a big difference to some people's income/way of living.

I run a small ltd company and provide IT services to one client at a time. The 2% hike in small business corporation tax is a big chunk for me. The kick in the face is the 2% reduction for BIG business.

Since Labour has been in power there has been one assault after another on small businesses (despite their claim that they are the party that supports small business).

It's all about their ethos. They're not bad, and they think they're doing good - but Labour's core values and principles are bad for business. They're also bad for our basic freedoms. The reason is that, deep down, Labour simply doesn't trust people.

I could whine on forever but let me just incite you all to racial hatred by saying someone please kill that miserable Stalinist Scottish c*nt already!

(Not that I'm actually anti-Scot. Just anti-dirty, lying, spinning, twattish bastards!)

 

[Jupitus]

Since when was a 2.3i Galaxy a fucking Gas Guzzler???

Wanker

 

[Tom]

I run a small ltd company and provide IT services to one client at a time. The 2% hike in small business corporation tax is a big chunk for me. The kick in the face is the 2% reduction for BIG business.

A lot of my collegues are going to get thwacked by this. Myself I'm a sole trader, I don't like the paperwork involved with being a ltd company, I might benefit slightly from the 2% reduction in income tax, although not much because my council tax bill is likely to swallow that saving.

Labour = tax and spend. Nothing ever changes.

 

[yaruar]

A lot of my collegues are going to get thwacked by this. Myself I'm a sole trader, I don't like the paperwork involved with being a ltd company, I might benefit slightly from the 2% reduction in income tax, although not much because my council tax bill is likely to swallow that saving.

Labour = tax and spend. Nothing ever changes.

Although limited company status was never intended to be used by single contractors, they've just used the status for years as a tax loophole. The budget change AFAIR (i've not had time to study the details) actually rewards small businesses who invest, which will help proper small businesses as R&D especially was a nightmare (my last company i worked for was being hit for 1,000,000 tax as the inland revenue was questioning the R&D status of the project even though we were developing a brand new software/hardware product and the total spend of the company was less than 3,000,000 a year at it's peak)

 

[rynnor]

I'm still amazed to see a Labour government pass tax laws that hurt the lowest paid - I shouldnt be surprised after the other shit they have done but still!

Upping the tax on small business'es saved them 400 million a year but the tax break for large companies cost them 3 billion - seems a bit odd.

We are still a high corporation tax country so I cant see it making any difference to inward investment - must be a back hander involved here.

Glad these bastards are out at the next election - we should have a two terms max rule.

 

[yaruar]

I'm still amazed to see a Labour government pass tax laws that hurt the lowest paid - I shouldnt be surprised after the other shit they have done but still!

Do you actually realise the the poorest paid actually come out best after all the tax changes, especially considering the marginal benefits of extra income being higher the less money you have. Unless they drink and smoke, but that's essentially their own fault.

 

[Raven]

he has given an income tax cut to the people most likely to vote, low earners don't tend to vote quite as much as the "middle class"

though ofc as it works out pretty much everyone will be paying more tax per year.

 

[Scouse]

Although limited company status was never intended to be used by single contractors, they've just used the status for years as a tax loophole.

Big misconception there old bean. The incorporation laws are designed around having one director and a secretary. That's the minimum you need to form a company. It's not a "tax loophole" for scum.

I want to run a business. I want to run it for myself, at my pace and I get to pick and choose the clients that I decide to work for and the terms and conditions that I work under.

I'm NOT an employee and although I've never actually walked away from a contract I've threatened to when clients failed to understand that distinction.

The idea that I'm not running a "proper" company simply because I'm not interested in growing it in the traditional capitalist sense (because I'm not a traditional capitalist) is a fallacy.

I choose to run my affairs like this because it gives me ultimate control.

The costs? No holiday entitlement, no sick pay entitlement and no set "career path" that employees seem to want (for some reason). If I'm in a car crash and can't work for 3 weeks then at best I simply lose 3 weeks money - although it's perfectly possible for the client to sue me for lack of service in such an eventuality.

The benefits I get? Well - money, of course (although not as much as you'd think). I don't have to jump through the company hoops/have annual reviews and "targets" and all that fucking bollocks. Most importantly - I'm independent and in charge of my own future. If I fuck up I know it was my fault, if I do well I feel pleased with myself.

I decided to incorporate after I realised that there's no real security in being an employee (I was made redundant 12 months into my first ever job). I figure that after 2 years in a company you're entitled to 2 weeks wages when they ditch you. Screw that! Business for yourself is the only way forward

 

[Will]

I have no idea what you are talking about Scouse. In what way are you (I assume ltd) different from Tom (sole trader)?

 

[MYstIC G]

Basically, he's more protected by law financially if it all goes wrong.

 

[Tom]

With those protections however comes greater responsibilities.

Also, anyone can look on companies house and view his name, address, and how much money he turned over last year.

He can have a company car, and charge his company mileage. Basically you have your car, you pay for the fuel, then you charge the company 40ppm for the first 10,000 miles, and 25ppm thereafter (IIRC). Which is a nice moneyspinner if you drive a car that ain't worth much

You can also employ someone to do a spurious job, say bookkeeping, and pay them a wage below the taxable earnings limit - about 5 grand a year. That person could be anyone you like, which means effectively you can get 5 grand tax free if that person isn't working. Everyone does it.

I tried it, didn't like the excess paperwork, and went back to being a sole trader. Didn't really save any money in tax either.

 

[Scouse]

With those protections however comes greater responsibilities.

He can have a company car, and charge his company mileage. Basically you have your car, you pay for the fuel, then you charge the company 40ppm for the first 10,000 miles, and 25ppm thereafter (IIRC). Which is a nice moneyspinner if you drive a car that ain't worth much

You can't actually charge mileage if it's a company car. You also get taxed as a benefit in kind so it makes it not worth it.

You can also employ someone to do a spurious job, say bookkeeping, and pay them a wage below the taxable earnings limit - about 5 grand a year. That person could be anyone you like, which means effectively you can get 5 grand tax free if that person isn't working. Everyone does it.

I'm pretty sure not everyone does it as I know maybe 20 contractors and not one of them does it. I've been doing it for 9 years too and I've not even met someone in passing who does it...basically I think they'd call that fraud.


Financially it means that I can pay myself, say, 15k a year. The rest stays in the company account in case I'm not working. If I have a good year (say 12 months with no breaks) then I can take a dividend on profits. This means I have to pay corporation tax - but not the national insurance side as it's a payment from a shareholding (I hold the shares in the company) - which is a bonus.

On the other hand if I have a bad year and can't find work then, if I'm clever, I'll still have enough cash in the bank to pay my 15K salary so I don't lose my house.

Winner!

 

[rynnor]

Do you actually realise the the poorest paid actually come out best after all the tax changes, especially considering the marginal benefits of extra income being higher the less money you have. Unless they drink and smoke, but that's essentially their own fault.

How?

Basic personal allowance is £5035 currently - after that you would pay Income tax at 10% on the next 2150 or £215.

Under the new system you'd pay at 20% so £430 or double what you would have paid previously.

The Break even point comes at an income over 17,185 - everyone below this point is worse off - thus the poorest are worse off - do you still dis-agree?

 

[Tom]

You can't actually charge mileage if it's a company car. You also get taxed as a benefit in kind so it makes it not worth it.

Ah reet, this is why I have an accountant, and why I'm not a ltd company

 

[Chilly]

Do you actually realise the the poorest paid actually come out best after all the tax changes, especially considering the marginal benefits of extra income being higher the less money you have. Unless they drink and smoke, but that's essentially their own fault.

Fags and beer have gone up in line with inflation, in real terms there is no increase since wages tend to go upa tiny amount (with inflation) every year or two.

 

[Tom]

I don't see the price of Chewits going up with inflation.

 

[Wij]

I don't see the price of Chewits going up with inflation.

But my council tax goes up 10% or so every year :/

 

[Tom]

Good old Gordon Beadle.

 

[Chilly]

What are you talking about? Sweets are far more expensive now than they were when I actually bought them. When I was 12 or so, mars bars were 25p or so, now they are routinely 45-50p. That might not be in line with inflation but its price increase over time. Virtually everything gets expensive with time.