July 2015 budget

[Hampster Gull]

Great Budget 2015. Focuses people on work and gives them a good living wage when they do, lessening dependency on welfare support. And much more. Well done George

 

[Hampster Gull]

I forecast a strike or two !!!

Why? Inflation is flat this year, unlikely to run away in come years

 

[Hampster Gull]

[MENTION=1416]Ernest[/MENTION] will be pulling his hair out! A great budget that undermines why the country could trust the Conservatives at this delicate point in our economic recovery

 

[seagullsovergrimsby]

Why? Inflation is flat this year, unlikely to run away in come years

Not good for all the workers who currently earn £7.20 an hour (70p an hour above NMW) who probably wont get a pay rise in 2016 as their employer decides to pay the "living wage"

 

[Bozza]

Not good for all the workers who currently earn £7.20 an hour (70p an hour above NMW) who probably wont get a pay rise in 2016 as their employer decides to pay the "living wage"

So a 70p (nearly 11%) rise is "not good for all the workers"? Is that the best Labourites have got today?

 

[Papa Lazarou]

It's a good thing in my eyes then. From what I know, it seems to have been the most ridiculous tax efficiency (and I'm being kind in my use of terminology here) going for a very, very long time.

Given your social conscience though, El Presidente, I can't imagine you'd have taken advantage of this at all, and you would pay yourself a fully taxable income, so this change would make no difference to you. Right?

When is this change due to be applied? Immediately? I've seen no date mentioned in any of the info.

 

[Simster]

There's no reason why someone couldn't incorporate and still pay themselves a full income as any other employee of a, typically larger, company.

The reason people don't, of course, is to try and minimise their tax liability.

At which point, for me, they lose all right to ever bitch about anyone else's tax affairs.

I have to take issue with this. When you set yourself up as a firm, you end up having to pay both employee and employer national insurance. It's an odd situation but if you try and do the "right" thing by paying yourself a large salary as opposed to a large dividend, you actually end up getting clobbered twice as badly.

 

[El Presidente]

I don't have any issue. I just find it interesting that many of those who might be outspoken about the tax affairs of others are quietly and happily doing all they can to minimise their own tax liabilities.

I don't think I've ever met a one-man-band type who has, voluntarily, paid himself a full income (and no or minimal dividends) because they believed it right to pay their fair share of tax on what they earn, rather than try to minimise their tax outgoings in every way possible. It seems a massive coincidence that these folk often have wives or partners who "takes care of the admin" for them too, typically for as much salary as can be paid before income tax becomes due.

Hypocrisy much?

If you have an ISA you are 'quietly and happily doing all they can to minimise their tax affairs'.

As for bringing my wife into it, I think that's a bit personal and put of order, as she gave up her well paid job to become an unpaid carer for her mother who suffers from Alzheimer's, as you well know.

 

[Bozza]

If you have an ISA you are 'quietly and happily doing all they can to minimise their tax affairs'.

As for bringing my wife into it, I think that's a bit personal and put of order, as she gave up her well paid job to become an unpaid carer for her mother who suffers from Alzheimer's, as you well know.

I'm not bringing your wife into it - I'm talking with very broad and wide-sweeping terms about one-man-bands I have come across. I have no idea what your wife did, does or will do, nor if it has anything to do with what you have done, do or will do.

 

[Simster]

So a 70p (nearly 11%) rise is "not good for all the workers"? Is that the best Labourites have got today?

Clearly not.

Personally, I thought the replacement of the student grant with a loan was a pretty fair criticism. And the fact that inheritance tax has been reduced for the 5% who actually pay it is nothing more than a sop to the already wealthy.

 

[Bozza]

When is this change due to be applied? Immediately? I've seen no date mentioned in any of the info.

2016:

"Over 1m people are expected to recieve a tax cut after George Osborne announced a major overhaul of the tax system on dividends.

The chancellor today said the dividend tax credit was to be replaced with a “tax-free allowance of £5,000” for all taxpayers on dividend income.

Dividends received above that amount will be taxed at 7.5 per cent, 32.5 per cent or 38.1 per cent, depending on the individual’s tax band.

The changes are set to come into force in 2016."

I must admit I have no idea what this really means for the one-man-bands types as opposed to investors taking dividends from listed companies they hold stock in.

 

[El Presidente]

I'm not bringing your wife into it - I'm talking with very broad and wide-sweeping terms about one-man-bands I have come across. I have no idea what your wife did, does or will do, nor if it has anything to do with what you have done, do or will do.

Given that you've met her I find that hard to believe.

 

[Bozza]

I have to take issue with this. When you set yourself up as a firm, you end up having to pay both employee and employer national insurance. It's an odd situation but if you try and do the "right" thing by paying yourself a large salary as opposed to a large dividend, you actually end up getting clobbered twice as badly.

Indeed.

But I'm sure there's a happy medium that can be found that doesn't involve paying as little taxable income as possible. These chaps must have access to a calculator and/or spreadsheet to work it out if they really want to. I suspect most don't want to.

 

[Bozza]

Given that you've met her I find that hard to believe.

I have but I genuinely have no idea what she did/does with her time. How would I?

(There's a slim chance I was told, of course, and my cider consumption of the time put paid to that particular memory, but it's not something I have any genuine memory of.)

 

[seagullsovergrimsby]

So a 70p (nearly 11%) rise is "not good for all the workers"? Is that the best Labourites have got today?

Adults over 25 will get a well deserved 70p an hour pay rise if they are now on NMW but the consequences are that by 2020 more workers will be on the "living wage" in a race to the bottom. Employers are rolling on the floor laughing because they'll be able to get away with £9 an hour in five years time whereas they realistically would have had to pay more. I pity all those who earn £9 an hour in 2015 who will still be earning £9 an hour in 2020.

 

[Papa Lazarou]

Indeed.

But I'm sure there's a happy medium that can be found that doesn't involve paying as little taxable income as possible. These chaps must have access to a calculator and/or spreadsheet to work it out if they really want to. I suspect most don't want to.

Or their accountant. I must give mine a call

 

[deletebeepbeepbeep]

I voted Labour earlier this year but that seems like a decent budget, other than the measures to help thier mates which is to be expected- cutting corporation tax, scrapping inheritance tax and capping public sector pay.

Introducing a decent level of living wage and cutting landlords tax perks are excellent and unexpected measures. I hope we see other measures to reduce landlords stranglehold over the housing market.

 

[Simster]

Indeed.

But I'm sure there's a happy medium that can be found that doesn't involve paying as little taxable income as possible. These chaps must have access to a calculator and/or spreadsheet to work it out if they really want to. I suspect most don't want to.

In truth, I find it hard to believe that simplifying personal tax rates isn't possible. For example, why doesn't any government abolish NI completely, and roll it into income tax? It would eliminate the issue of low salary/high dividends almost overnight. I'm sure some of the complex tax laws do little more than keep certain accountants in a job.

 

[Westdene Seagull]

Why? Inflation is flat this year, unlikely to run away in come years

I wasn't suggesting they would be justified but you'll see the teachers out at the very least.

 

[tinycowboy]

What about the parents? They paid tax on their earnings. They should have the right to give it to whomever they want. Working hard for your children is a natural ambition.

You're right - they did. But they didn't pay tax on any gain in value on their house. I acknowledge it's not a popular position, but I don't have a problem with IHT.