Say No to Dividend Tax - Parliamentary Petition

[chopper]

I don't see it as a loophole being closed. Ultimately, instead of 20% personal income tax, we have paid 20% corporation tax. From April 2016, we'll be paying 20% corporation tax, and then 7.5% dividend tax on the remaining 80% once we bring it into our personal space.

It's still better than paying NI, but we'll be paying more tax on earnings than employees will, potentially coupled with not getting tax relief on T&A.

[TestMangler]

Erm, I think people have the right to get a bit narked when they get hit with a 2k tax bill out of the blue.....

And it's not just this, its the T&S and IR35 issues (and possibly the BTL'ers). Some people are going to be quite understandably upset.

And most of the upset ones voted tory 'coz they is the party of biznizz, innit' *******.

[AntonioDJCA]

I don't see it as a loophole being closed. Ultimately, instead of 20% personal income tax, we have paid 20% corporation tax. From April 2016, we'll be paying 20% corporation tax, and then 7.5% dividend tax on the remaining 80% once we bring it into our personal space.

It's still better than paying NI, but we'll be paying more tax on earnings than employees will, potentially coupled with not getting tax relief on T&A.

If you are a high earner, you would still be better off going through your own limited company even after the new rules kick in. It won't be as lucrative, true, however the benefit is still there.

[LondonManc]

How much does this dividend tax get cancelled out by the new corporation tax levels?

Out of the three battles we've been presented with, this one is the one I'd happily lose if we could only win two.

The T&S attempted has failed previously I believe.

[jamesbrown]

How much does this dividend tax get cancelled out by the new corporation tax levels?

Depending on how cynical you might be, not at all. There's nothing special about 7.5%, and I'd expect it to increase in line with the CT reductions (if not more).

[SueEllen]

Depending on how cynical you might be, not at all. There's nothing special about 7.5%, and I'd expect it to increase in line with the CT reductions (if not more).

As it effects anyone who has over 5K of dividends I suspect if any government increases too much big business bosses will be complaining.

[LondonManc]

Depending on how cynical you might be, not at all. There's nothing special about 7.5%, and I'd expect it to increase in line with the CT reductions (if not more).

I don't give a toss about the blue rinse brigade and their shareholdings, I'm talking purely from a contracting point of view - increased dividend tax versus lower corporation tax is giving with one hand and taking away with the other. We're not much worse off with the combination of the two. There are bigger fights to fight and more people who will care about the others, especially if we're pointing out how the big corps like Accenture and nasty-offshore-stealing-our-job-types like Wipro stand to benefit from the IR35/T&S tulip we're up against.

[SueEllen]

I don't give a toss about the blue rinse brigade and their shareholdings, I'm talking purely from a contracting point of view - increased dividend tax versus lower corporation tax is giving with one hand and taking away with the other. We're not much worse off with the combination of the two. There are bigger fights to fight and more people who will care about the others, especially if we're pointing out how the big corps like Accenture and nasty-offshore-stealing-our-job-types like Wipro stand to benefit from the IR35/T&S tulip we're up against.

Actually you should as governments like to divide and conquer (add to the tax code)

However like you at the moment my priorities are T&S and IR35.

[jamesbrown]

I don't give a toss about the blue rinse brigade and their shareholdings, I'm talking purely from a contracting point of view - increased dividend tax versus lower corporation tax is giving with one hand and taking away with the other. We're not much worse off with the combination of the two. There are bigger fights to fight and more people who will care about the others, especially if we're pointing out how the big corps like Accenture and nasty-offshore-stealing-our-job-types like Wipro stand to benefit from the IR35/T&S tulip we're up against.

I entirely agree with your priorities, but you asked a specific question, and I offered an answer. There's no reason to believe that the dividend tax will stay at 7.5% when the CT rates come down, so any perceived trade-off between the dividend tax and CT (one of which refers to 2020) could be completely moot.

[BolshieBastard]

Signed it.