Whats your views on Budget 2015?

[TestMangler]

Even so - they can unincorporate, we can't....

Who is this 'we' you speak of

I decided contracting was a busted flush last year and was in the process of trying to decide if I was going to close down and 100% commit to never going back to it.

Only just incorporated a new company (outside of the PSC target group). Talk about bad timing

[TestMangler]

I did point that out in general. I think this was a pretty "populist" (i.e. designed to cater to the average voter) budget by Osborne.

Not very populist with anyone stupid enough to try to run a business or employ anyone though in the UK, was it

It's a very Labouresque way of doing things. In fact, it's so Labouresque, Labour would probably never have thought of it !

Pay poorly paid workers more with the bill footed by employers large and small, take away low paid working benefits and while the employer is still reeling from the headbut of the min wage increase, boot him in the balls with a dividend tax. That's a recipe for growth.....

[SpontaneousOrder]

Not very populist with anyone stupid enough to try to run a business or employ anyone though in the UK, was it

It's a very Labouresque way of doing things. In fact, it's so Labouresque, Labour would probably never have thought of it !

Pay poorly paid workers more with the bill footed by employers large and small, take away low paid working benefits and while the employer is still reeling from the headbut of the min wage increase, boot him in the balls with a dividend tax. That's a recipe for growth.....

Ontop of auto pension.

[stek]

Who is this 'we' you speak of

I decided contracting was a busted flush last year and was in the process of trying to decide if I was going to close down and 100% commit to never going back to it.

Only just incorporated a new company (outside of the PSC target group). Talk about bad timing

Well I just started my Plan B but new contract means I have to at least devote some attention to that for a bit!

Seriously thinking of buggering off to Moscow on a work permit - i got contracts there and with a good 'krisha' tax is none percent....

Поехали!

Took me ages to type that word, could I find the 'x' on the Cyrillic keyboard, could I fook - it's there now - top right on the brackets key...

Means 'Let's Go' - it's what Gagarin said on the intercom on lift off of Vostok One.....

[Zero Liability]

Not very populist with anyone stupid enough to try to run a business or employ anyone though in the UK, was it

Indeed but such is the essence of populist policies - they cater to the masses for political gain, even if it's to the former's detriment down the line.

You're absolutely right though, this budget was very "Labouresque" in every almost respect.

[electronicfur]

Does anyone know if the dividend tax treatment of dividends received by a Ltd company have changed?

Ie if my limited company receives a dividend from another company, my company does not have to pay tax on that, as that would be double taxation, since the other company has already paid tax. Is that still the case?

[northernladuk]

Does anyone know if the dividend tax treatment of dividends received by a Ltd company have changed?

Ie if my limited company receives a dividend from another company, my company does not have to pay tax on that, as that would be double taxation, since the other company has already paid tax. Is that still the case?

Blimey.. I'd like to know more about what goes on there. Sounds nice and dodgy that.

[Jessica@WhiteFieldTax]

I've crunched some numbers, and done a briefing for my clients.

It's E&OE, but people are welcome to have a look:

https://www.whitefieldtax.co.uk/web/...Budget2015.pdf

I don't think the dividend changes are as grim as first thought - or at least as I first thought. About 4% increase in marginal rate, but with a taper on its impact due to the £5k exemption. The cut in the CT rate once it's activated in full mitigates the changes, as does the lower taxable amount for dividends now they are not grossed up.

Assuming single shareholder, salary=PA, ignoring other tax band changes today, and (big caveat) trying to make sense of the comparatively brief wording, I think

Profit before salary, tax and dividend £30k - pay £430 extra
Profit before salary, tax and dividend £70k - pay £1,590 extra
Profit before salary, tax and dividend £200k - pay £6,735 extra

Potentially those amounts double if two shareholders.

Very E&OE, will check the figures in due course and, in any event, there is an awful lot to unfold.

[SueEllen]

Even so - they can unincorporate, we can't....

If you employ other people or did jobs in other people's houses would you unincorporated?

While as a director you are personally liable for somethings, limited liability stops customers suing you personally and help limits what employees can sue you for.

[mudskipper]

I've crunched some numbers, and done a briefing for my clients.

It's E&OE, but people are welcome to have a look:

https://www.whitefieldtax.co.uk/web/...Budget2015.pdf

I don't think the dividend changes are as grim as first thought - or at least as I first thought. About 4% increase in marginal rate, but with a taper on its impact due to the £5k exemption. The cut in the CT rate once it's activated in full mitigates the changes, as does the lower taxable amount for dividends now they are not grossed up.

Assuming single shareholder, salary=PA, ignoring other tax band changes today, and (big caveat) trying to make sense of the comparatively brief wording, I think

Profit before salary, tax and dividend £30k - pay £430 extra
Profit before salary, tax and dividend £70k - pay £1,590 extra
Profit before salary, tax and dividend £200k - pay £6,735 extra

Potentially those amounts double if two shareholders.

Very E&OE, will check the figures in due course and, in any event, there is an awful lot to unfold.

Thanks Jessica, a good write up.