Budget dividend tax changes - anyone found a good calculator online yet?

[PerfectStorm]

I haven't checked the figures yet, but try this:

Obvious flaw - only lets you select one salary, so make some allowance for the shift from 10,600 to 11,000 (which may change again of course)

But difference is minimal in the big scheme of things

[centurian]

OMG I put some numbers in and contracting is dead. We are doomed I tell ye' doooomed!! I'm going to pack it in and go permie......

Yeah, I plugged in some numbers - and for typical amounts I would aim to take out in a year, it equated to about two billable days (gross) worth.

That doesn't mean I am "happy" about the change - far from it, but it's not like the sky has fallen in.

[Lumiere]

Yeah, I plugged in some numbers - and for typical amounts I would aim to take out in a year, it equated to about two billable days (gross) worth.

That doesn't mean I am "happy" about the change - far from it, but it's not like the sky has fallen in.

Wouldn't CT rate cut compensate for it, I did some quick calculations and it was roughly the same as before from 2018.

[PerfectStorm]

Wouldn't CT rate cut compensate for it, I did some quick calculations and it was roughly the same as before from 2018.

I think that's about the size of it - though bear in mind it will take a couple of years to slide down fully to 18%.

Of course successive budgets may lower this further and will possibly raise the personal allowance past that already announced.

As I've said elsewhere - if this very minor fluctuation has you looking for permanent jobs then you were on the wrong contract.

[jamesbrown]

I think that's about the size of it - though bear in mind it will take a couple of years to slide down fully to 18%.

Of course successive budgets may lower this further and will possibly raise the personal allowance past that already announced.

As I've said elsewhere - if this very minor fluctuation has you looking for permanent jobs then you were on the wrong contract.

I think it was mooted as 2017 for 19% and 2020 for 18%, so more like 4-5 years, although things could change. Also, while I entirely agree with the comments about the dividend taxes being a minor irritation, there are other aspects of this budget that are more worrying, specifically the expenses and IR35 review, which do have the potential to materially change the landscape and also point to a direction of travel (e.g. to speculate, some form of qualifying criteria for relief on an uprated dividend tax).

[eek]

As I'm sure I've said before the dividend change is annoying but not that important (heck we've had it very, very good for a long time).

The killer in the budget is the potential loss of expenses.

[mudskipper]

Wouldn't CT rate cut compensate for it, I did some quick calculations and it was roughly the same as before from 2018.

It depends if you think the CT cut will be accompanied by an increase in divvy tax.

[pr1]

It depends if you think the CT cut will be accompanied by an increase in divvy tax.

i'd bet my house it will

[LandRover]

As I'm sure I've said before the dividend change is annoying but not that important (heck we've had it very, very good for a long time).

This is the start imo, when required I have no doubt the dividend tax and it's thresholds will be adjusted to take more tax each year. There is a long history of this happening on other taxes.

[d000hg]

This is the start imo, when required I have no doubt the dividend tax and it's thresholds will be adjusted to take more tax each year. There is a long history of this happening on other taxes.

It doesn't happen on income tax and as mentioned, the rates set seem to deliberately bring dividend taxation inline with income tax.

I do wonder if CT will drop sooner - it's great PR for him to say "we decided to bring this tax cut forward a year" even if that was planned all along.