Say No to Dividend Tax - Parliamentary Petition

[d000hg]

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).

7.5% and the other bands pretty much brings things in line with how much tax PAYE earners pay (I thought) which suggests it is deliberate.

[pr1]

7.5% and the other bands pretty much brings things in line with how much tax PAYE earners pay (I thought) which suggests it is deliberate.

7.5% is arbitrary, deliberate would be 15% to keep it the same as someone playing employees NI

per £1000, outside the tax free limits
PAYE guy keeps £680 (after 20% IT & 12% NI)
divi guy keeps £740 (20% corp then 7.5% divi)

div tax needs to be 15% for them to keep the same, which I think it will be eventually (they'll introduce it at 7.5% then push it up to 15% over time)

[d000hg]

I suggest if you're that sure, you quit contracting so prices can be driven up due to higher demand

[pr1]

I suggest if you're that sure, you quit contracting so prices can be driven up due to higher demand

i'm not in your sector dont worry

[SueEllen]

7.5% is arbitrary, deliberate would be 15% to keep it the same as someone playing employees NI

per £1000, outside the tax free limits
PAYE guy keeps £680 (after 20% IT & 12% NI)
divi guy keeps £740 (20% corp then 7.5% divi)

div tax needs to be 15% for them to keep the same, which I think it will be eventually (they'll introduce it at 7.5% then push it up to 15% over time)

We aren't the only one hit by this tax.

There are people in there 50's whose income is from their shares who have delayed taking their pension.

[pr1]

We aren't the only one hit by this tax.

There are people in there 50's whose income is from their shares who have delayed taking their pension.

that's the point i was making...

[SueEllen]

that's the point i was making...

I'm trying to help you preach to the unconverted.

Some of the people on here aim to retire early using investments not a pension to fund their life style. So this will clearly effect them more in the future than now.

[d000hg]

We aren't the only one hit by this tax.

There are people in there 50's whose income is from their shares who have delayed taking their pension.

And are people in that situation paying income tax on their income currently which will soon be income tax + dividend tax?

However I'm not sure people who have £500k of shares and have taken early retirement in their 50s are going to get much more sympathy than us "contractors earning £100k a year and avoiding tax by working through their own company".

Best to stick to the "hard-working shop owner" if you want an emotive argument

[SueEllen]

And are people in that situation paying income tax on their income currently which will soon be income tax + dividend tax?

However I'm not sure people who have £500k of shares and have taken early retirement in their 50s are going to get much more sympathy than us "contractors earning £100k a year and avoiding tax by working through their own company".

Best to stick to the "hard-working shop owner" if you want an emotive argument

People in their 50's often don't choose to take early retirement. I'm sure you have heard of ageism.

[d000hg]

The ones who have earned enough to live off the dividends on their portfolio choose. The ones who are hit by ageism probably don't have much in the way of savings to start with, sadly