Finance Bill 2018 - a couple of interesting points.

[ChimpMaster]

Your dividend allowance came a step closer to being cut today as the government published the Finance Bill | City A.M.

The relevant part for us is the cut to dividend tax allowance, but I note how HMRC make this part sound like a positive:

“More than half of the new provisions will be backdated, and this will bring welcome certainty to many – particularly non-domiciled individuals who had the rug pulled out from under them when the first bill was drastically shortened. Many taxpayers will end up paying more tax under the new rules, but at least they now have a clear blueprint of the new tax architecture."

They clearly think that everyone in business is a fool.

[Lance]

you are misquoting. That's not HMRC saying that. It's James Hender (the man trying to get you to invest before next April).

I don't really have much of a problem with this though. There's not really a good reason why we should escape tax on £5k of income just because it's a dividend. And it's only 7.5%.

We'll get hurt when someone realises that all income should be taxed at 35% and NICs are scrapped. Which is what I'd do if I was chancellor (good job I'm not that narcissistic)

[TheCyclingProgrammer]

I know some may see the dividend tax and reduction of the allowance as a slippery slope, but lets remember to have some perspective on this. We are talking about an annual tax increase of £225, or less than half a day's work for most of us, and that's before adjusting for any increases in the personal allowance or reduction in the higher rate threshold and corporation tax rate.

[ChimpMaster]

I was more incensed about the comment on "backdating" and how the taxpayers would be "welcome" this.

[Fred Bloggs]

I know some may see the dividend tax and reduction of the allowance as a slippery slope, but lets remember to have some perspective on this. We are talking about an annual tax increase of £225, or less than half a day's work for most of us, and that's before adjusting for any increases in the personal allowance or reduction in the higher rate threshold and corporation tax rate.

Care to tot up all the "small" tax increases you've suffered the last, say, 15 years or so? Let's start at the abolishing of the zero rate of corporation tax on the first GBP 10k of profits and count it all up to today's dividend tax. I think you will be shocked how the tax burden has risen over that period of time. On top of that, there are the stealth tax increases too like not lifting mileage rates, stopping flat rate VAT and stuff like that.

[barrydidit]

The observation about Goose feathers and hissing springs to mind.

[TheCyclingProgrammer]

Care to tot up all the "small" tax increases you've suffered the last, say, 15 years or so? Let's start at the abolishing of the zero rate of corporation tax on the first GBP 10k of profits and count it all up to today's dividend tax. I think you will be shocked how the tax burden has risen over that period of time. On top of that, there are the stealth tax increases too like not lifting mileage rates, stopping flat rate VAT and stuff like that.

So in other words, what the government giveth with one hand they taketh away with the other? Is this news?

[northernladyuk]

We'll get hurt when someone realises that all income should be taxed at 35% and NICs are scrapped. Which is what I'd do if I was chancellor (good job I'm not that narcissistic)

Ireland. Any income including dividends taxed at 52% above €35k threshold.

[Lance]

Ireland. Any income including dividends taxed at 52% above €35k threshold.

Ouch. Mind you their economy is a basket case (although we join them in about 18 months)

[northernladyuk]

Ouch. Mind you their economy is a basket case (although we join them in about 18 months)