Budget updates....
17 April 2002, 05:33 PM
#35
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the amount of NI is not indexed- it has simply risen 1%- the amount of earnings on which that NI is due "may" have been indexed- if thats the case then a larger amount of earnings will face an increased (by 1%) NI- so yes!
17 April 2002, 05:33 PM
#36
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Just watching BBC2 just done an exaple of a guy on 35k a year and he is £3.50 a week worse off. They also said cap stays.
Si
Just read Tiggs post
[Edited by SiCotty - 4/17/2002 5:34:27 PM]
Si
Just read Tiggs post
[Edited by SiCotty - 4/17/2002 5:34:27 PM]
17 April 2002, 05:35 PM
#37
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17 April 2002, 05:45 PM
#39
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From the BBC web-site
http://news.bbc.co.uk/hi/english/bus...00/1935389.stm
Hmmm - if this is true it will be the key in future budgets. It will be slowly increased until we're back at %50 top rate tax
I hate it when he doesn't anounce and explain clearly siginificant bits like this to us and parliament.
Deano
Although he froze the upper ceiling at which national insurance is paid to £30,940 from April 2003, the additional 1% will still be deducted on earnings above that amount
Hmmm - if this is true it will be the key in future budgets. It will be slowly increased until we're back at %50 top rate tax
I hate it when he doesn't anounce and explain clearly siginificant bits like this to us and parliament.
Deano
17 April 2002, 05:45 PM
#40
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nothing on the 250+ side (may have been something on the lower levels- i missed a bit!) BUT he did say they were going to tackle people avoiding the stamp on prop purchases when they should be paying it
17 April 2002, 05:51 PM
#42
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I had a look on the Inland Revenue website. Basically (apart from the bottom £4600 IIRC) you pay 11% NI up to the 'cap' and 1% NI thereafter. Horses mouth and all that.
Of course, for some of us the NI has risen by 2% (employers and employees)
Edited to add URL: http://www.inlandrevenue.gov.uk/budget2002/rev2.htm
[Edited by carl - 4/17/2002 5:53:46 PM]
Of course, for some of us the NI has risen by 2% (employers and employees)
Edited to add URL: http://www.inlandrevenue.gov.uk/budget2002/rev2.htm
[Edited by carl - 4/17/2002 5:53:46 PM]
17 April 2002, 05:54 PM
#43
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what a sneaky scum bag tax! whats that 1% doing on its own going past the cap!!! its like a stray bloody bullet!
its a pretty useless cap if its got holes in it! should be called the earnings polo!
its a pretty useless cap if its got holes in it! should be called the earnings polo!
17 April 2002, 05:56 PM
#45
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The VAT simplification for small businesses notice doesn't seem to be on the HMCE web site yet
There's a note that says "it'll be simpler", "it'll be opt-in", "the rate will depend on the industry sector you're in" but nothing about the actual rates (that detail is in the non-existent VAT note)
Edit: Ooh, it is on there but it isn't on the index page yet. A bit of URL-guessing gives http://www.hmce.gov.uk/forms/notices/info0202.htm
[Edited by carl - 4/17/2002 5:58:40 PM]
There's a note that says "it'll be simpler", "it'll be opt-in", "the rate will depend on the industry sector you're in" but nothing about the actual rates (that detail is in the non-existent VAT note)
Edit: Ooh, it is on there but it isn't on the index page yet. A bit of URL-guessing gives http://www.hmce.gov.uk/forms/notices/info0202.htm
[Edited by carl - 4/17/2002 5:58:40 PM]
17 April 2002, 05:57 PM
#46
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lol- limit is a limit! try telling the copper who nicks you over the limit that most of your speed was below the limit and only a surlpus amount of your speed exceded the limit!
17 April 2002, 06:00 PM
#47
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Nice analogy Tiggs 
Is not that these things get done that annoys me. (well it does but not as much as).. They're never clearly explained in the Speech. you have to wait for the small print afterwards to find which sneaky measure has been slipped in. Soemthing as fundamental as replacing NI upper earinings cap with a tiered system *should* be announced in the speech so its clear. :<
Is not that these things get done that annoys me. (well it does but not as much as).. They're never clearly explained in the Speech. you have to wait for the small print afterwards to find which sneaky measure has been slipped in. Soemthing as fundamental as replacing NI upper earinings cap with a tiered system *should* be announced in the speech so its clear.
:<
17 April 2002, 06:08 PM
#50
i dunno. This is what i absolutely hate about politicians. They Lie through their teeth.
The New Labour Pledge was no increase in income tax rates, so they have painted themselves into a corner and politically cant raise income tax. So instead they create a new NI 1% aditional charge above the cap. This is exactly the same thing as raising the higher rate tax rate to 41%, Plus it also raises an extra 1% on your tax below the threshold.
The sooner we have transparent, open, honest TAX in this country rather than the bollox of a tax and NI system, the sooner we have more honesty.
I have no problem with funding the NHS properly and accept that if it is to be improved it does need more money, but it makes me sick that they dont have the ***** to be honest about how that money is raised.
The New Labour Pledge was no increase in income tax rates, so they have painted themselves into a corner and politically cant raise income tax. So instead they create a new NI 1% aditional charge above the cap. This is exactly the same thing as raising the higher rate tax rate to 41%, Plus it also raises an extra 1% on your tax below the threshold.
The sooner we have transparent, open, honest TAX in this country rather than the bollox of a tax and NI system, the sooner we have more honesty.
I have no problem with funding the NHS properly and accept that if it is to be improved it does need more money, but it makes me sick that they dont have the ***** to be honest about how that money is raised.
17 April 2002, 06:31 PM
#51
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With john on this one. What we will probably see is that over the next few year the higher rate of NI will be increased by 1-2% each year until effectively the cap is all but non existent.
How do you think he intends to pay for all the other rises in the amount of cash that gets given to the NHS. I would not mind that much but it just gets waisted.
Simon
How do you think he intends to pay for all the other rises in the amount of cash that gets given to the NHS. I would not mind that much but it just gets waisted.
Simon
17 April 2002, 06:51 PM
#54
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Typical budget if you ask me.......
1.Raise money in a way that no-one can work out,
2.Introduce some popular,news grabbing gimmick that looks good but don't cost much.
17 April 2002, 07:14 PM
#56
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The amount that the 11% band applies to has also gone up by 2.5% and is now index linked.
Don't forget your employer also has to find that extra 1% too, and that money will have to come from somewhere ....
Steve
Don't forget your employer also has to find that extra 1% too, and that money will have to come from somewhere ....
Steve
17 April 2002, 08:01 PM
#58
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guess that 14.5 thing just saves you farting about working out your VAT ??? or am I completely off the mark here ???
******* ******* if you ask me ....
I wouldnt give em the steam of my **** !
******* ******* if you ask me ....
I wouldnt give em the steam of my **** !
17 April 2002, 08:21 PM
#59
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If you are outside IR35 then Corporation Tax is as foolows.
If your Company makes less than £10,000 pa in profits there is no
Corporation Tax to pay.
If you are within IR35 then you have an additional 2% DHSS to pay.
1% Employer
1% Employee.
As I am an OAP 1% Employer for me.
All the best,
John Catlin
If your Company makes less than £10,000 pa in profits there is no
Corporation Tax to pay.
If you are within IR35 then you have an additional 2% DHSS to pay.
1% Employer
1% Employee.
As I am an OAP 1% Employer for me.
All the best,
John Catlin
17 April 2002, 09:43 PM
#60
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John -- even if you are outside IR35 you still have to pay yourself some sort of salary 
Anyway, the VAT rules have changed -- if your turnover is less than £100k you can 'opt in' to a system whereby instead of paying VAT of the form (value of taxable supplies - VAT paid on materials)*1.175 you can forget about keeping records of what you've paid out and just pay (turnover * a percentage based on what industry you're in). For IT contractors you just pay 14.5% on your turnover. The question that will line a few accountants pockets is whether the 3% that you don't pay is greater or less than the 17.5% that you could have reclaimed on purchases made by the company.
This is supposed to simplify VAT, but I can't see it as you'll still have to keep records of the company's purchases (the accounts will look pretty crappy if there's money disappearing into nowhere). Also, if you're a one/two-man band limited company the Inland Revenue will want to see records of what's purchased for the company to make sure you're not giving yourself benefit in kind (e.g. by buying a washing machine for your house using company funds).
Anyway, the VAT rules have changed -- if your turnover is less than £100k you can 'opt in' to a system whereby instead of paying VAT of the form (value of taxable supplies - VAT paid on materials)*1.175 you can forget about keeping records of what you've paid out and just pay (turnover * a percentage based on what industry you're in). For IT contractors you just pay 14.5% on your turnover. The question that will line a few accountants pockets is whether the 3% that you don't pay is greater or less than the 17.5% that you could have reclaimed on purchases made by the company.
This is supposed to simplify VAT, but I can't see it as you'll still have to keep records of the company's purchases (the accounts will look pretty crappy if there's money disappearing into nowhere). Also, if you're a one/two-man band limited company the Inland Revenue will want to see records of what's purchased for the company to make sure you're not giving yourself benefit in kind (e.g. by buying a washing machine for your house using company funds).