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Can I avoid 7.5% Dividend Tax

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    #21
    Originally posted by TheCyclingProgrammer View Post
    All that being said, haven't the government been consulting on ideas to prevent "money boxing"?

    What's happening about 'money-boxing'? | Forbes Dawson

    Nothing in place as yet, there may never be, but it's being looked at.
    Yup, and realistically it'll be a growing "problem". With corporation tax rates falling and personal tax rates on dividends increasing, the tax system is encouraging people to make big corporate profits but not extract it. Ie moneyboxing, exactly the same thing they apparently want to stop.

    Depressing thing is it leads me to anticipate another IR35-esque shambles. In the same way the tax system encouraged some employees to attempt to become contractors, so there was then a bodged bit of legislation to try to prevent it, there'll be the same thing here.

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