The Government has announced that the planned rise in NIC for the self employed is to be scrapped.
A big victory for common sense and a decision I never understood. The self employed work long hours, and in the main employ people which helps our economy grow.
What the Govt should be looking at is unscrupulous employers taking advantage of their workforce through dodgy self employment and zero hour contracts (1) These employers are, in the main, big companies sticking two fingers up at the Govt and depriving the taxpayer of employers NI which would, I guess, more than make up the shortfall. I read of one cafe chain this morning who gave successful interviewees 40 hour unpaid training but without a guaranteed job at the end of it, although they have backed down under pressure. I find that disgusting and the Govt needs to look at the whole gig economy
Rant over!
(1) Zero hours contracts are not without their place, and can be beneficial for the likes of students etc, but on the whole have been abused by large employers.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I keep trying to do a 'quote' type response but it just comes up with a blank box. Oh well.
Totally agree John on the cafe (and more so restaurant) type businesses needing looking into on the minimum wage front. Particularly chefs as the set up and what the business owners can get away with is just plain wrong and is totally illegal. Yet HMRC, despite knowing about it and being informed about specifics, just take no action whatsoever. Plus the number of business shutdowns and immediate re-openings in that sector is ridiculous
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Phoenixing is another of my pet peeves, although if done properly, is perfectly legal. And how many Ltd Co's have shut down with O/D DLA's and not been checked? It's too easy to close a Ltd Co down and checks should be in place to see if there's an OD DLA.
Hi Lindsay
Class 2 is still being scrapped from April 2018.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The dividend scheme was good while it lasted but resulted in a lot of Companies being set up just to save on NI contributions. Shareholders were an easy target and it was a victim of it's own success.
It's still tax effective to have a Ltd Co as opposed to being a sole trader but accounting costs will wipe out any savings until you get past the £25k profit mark imo. The reduction to £2000 tax free was a bit mean but again an easy target.
Still, on the plus side, a reduction in Corporation Tax to 17% over the next 3 years is to be welcomed
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
