Tag Archive | "Philip Hammond"

Hammond Does U-Turn on Tax Grab

Just like I reported about last week, the Chancellor Philip Hammond went after the self employed in his budget with a tax grab, and many were outraged!

So much so that it now looks like Mr Hammond has decided to do an amazing U-Turn on his initial plans, in a move that we have never seen before from a UK Chancellor.

In a brief letter that was sent to all Tory MPs (I reported how many back benchers were not impressed by the tax grab plans), the Chancellor said that he would no longer be making Class 4 National Insurance payments more expensive for the self employed.

The right thing has been done of course, but it does raise some questions that need answering.

Firstly, how on Earth did they think doing a tax grab was a good idea in the first place? Just like I said last week, it was another slap in the face for our nations self employed. It’s almost as if many people in the government don’t have a clue.

Secondly, does the Chancellor have no conviction at all in what he is doing? To do a U-Turn so soon after the Budget really has made a lot of people wonder if this guy is even up to the job. The UK could soon become a laughing stock…it probably already is.

I didn’t agree with his decision to do the tax grab (and that does make me question his qualifications for the job), but what really makes me wonder about the Chancellor is the fact he was so quick to give in.

Sure, it’s good that you are willing to listen to other people and take on board feedback, but sometimes you have to stand behind your decisions. I think this was one of those times for Philip Hammond.

Other world leaders will no doubt be looking at this and noting down that the UK are potential easy targets when it comes to the negotiation table.

I’m not saying that Philip Hammond should not have backed down and gone away from his initial plans…but I think he did it way too quickly, and like mentioned before, with no real conviction is what he was doing.

Anyway, it’s good to see that self employed people are not going to be subjected to this tax grab, but in my opinion it really doesn’t change anything.

Contractors, freelancers, gig workers, small business owners…they need to be rewarded for what they do for the economy, especially when you consider that Brexit is just around the corner where the UK will be leaving the European Union.

These are the men and women that the government want on their side, but what are they doing to achieve this? Not a lot if you ask me.

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Tories Say No to Tax Grab on Self Employed

It’s that time of the year again…The Budget with Chancellor Philip Hammond, but some experts are predicting there could be a tax grab on the self employed.

This has led many Tory backbenchers to say enough is enough, and to remind Mr Hammond that constantly going after the hard working contractors and small business owners of this country just isn’t on at all.

One report suggests this years Budget could see National Insurance Payments targeted, with the self employed having to pay 3p in the pound more.

In my opinion this is just a blatant tax grab by Philip Hammond, and is in line with the usual “go after the self employed” tactic when they need to raise some extra money.

How about doing something good for those people who are keeping your economy propped up Mr Hammond? No of course, it’s always tax, tax, and more tax.

Right now 20% of the UK workforce are considered to be self employed, and with Brexit on the horizon these people are going to be more important than ever before.

The last thing the Chancellor wants to be doing is getting them angry…wouldn’t you agree? It’s the same old story though, and I’m sure the 3p change will be announced tomorrow.

It was only a few weeks ago that the Prime Minister, Theresa May, announced in a speech that small businesses, and the self employed in general, are more important than ever before.

Well, it doesn’t seem that Philip Hammond listened to that speech, he was probably too busy working out ways to get every last penny out contractors, freelancers, gig workers…you name it, they are all on his list.

To give you an idea of what this would all mean for the self employed, if you currently make 40,000 pounds a year, then expect an extra 80 pounds on top of what you already pay in tax and National Insurance.

Surely, the government should be looking at ways to encourage people to start out in business and begin working for themselves, and not trying to grab every last penny they can? I don’t think this has even occurred to them.

So now we are in a position where everybody will have to wait until tomorrow to find out exactly what the budget holds for self employed people. Who knows, maybe the Chancellor won’t move forward with this tax grab? Something tells me he will though.

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Experts Say Making Tax Digital is Too Soon

Most umbrella contractors are by now aware of the plans to make tax digital (MTD), but some people wonder if it might be rushed.

The chair of the Treasury Select Committee has recently wrote a letter to our new chancellor Philip Hammond giving him a reminder…”It’s better to get it right than to stick to a rigid timetable.”

You know, this is exactly what I’ve been saying ever since I discovered the plans for making tax digital, as the government do seem to rush into these things without the proper thought and planning that is needed.

Let’s just say that many contractors might find themselves in a position where it is harder to do their tax, especially if the system is not finely tuned. Do the government care though, or are they just going to keep on going with their original plans? I think we all know the answer to that.

Another respected organisation, the ATT, have also mentioned they have concerns, mainly around the fact that the government were not taking enough time listening to feedback from experts.

In other words, they have decided to move forward regardless of what people think, and without any thought to if this whole “making tax digital” is going to work in the real world.

One of the main issues that has been talked about extensively is the plans to make all self employed people do their tax on a quarterly basis instead of once a year.

In theory this could have been a good idea if the whole process was really simple and it only took you 15 minutes a time, but in reality is that going to happen? I don’t think so.

It will be more time consuming if you ask me, as hard working contractors and business owners around the country will have to put time in their schedule to focus on doing tax returns 4 times a year rather than just once.

In a way, I understand the government’s reasons for coming up with this idea, as in theory it should make doing tax easier. However, they are not understanding the simple fact that most self employed people put off doing their tax for one reason and one reason only…they don’t enjoy doing it.

Now we are going to have a situation where people have to do it 4 times a year. Well, they are not all suddenly going to start enjoying it are they? Instead, it is just going to be something they don’t want to do 4 times a year now rather than just the once.

As always though, we can only wait and see what happens with this. Maybe the government will come up with something that is easy to use and makes the whole process of doing tax enjoyable. I doubt it, but you never know.

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