Higher Corporation Tax

[Nixon Williams]

Sorry, a typo, Corporation tax will be 20% from 01/04/07, 21% from 01/04/08 & 22% from 01/04/09

Alan

[Denny]

Well, there is one consolation for me. Now that I've given up fags I've not only saved myself well over 2K a year, but I have avoided the £500 price hike I would have to pay now that Gordo has increased fags by 11p per packet.

That increase alone nearly pays for the added CT I would have to pay.

[NewBoy]

Gordo is such a cock!


Extract from that fat ones speech...

..."But I do need to act to deal with individuals artificially incorporating as small companies to avoid paying their due share of tax, a practise if left unaddressed would cost the rest of the taxpaying population billions of pounds"...


This is such a con...if he wanted to stop this practice, then he should raise it much more that this...as it is, this won't stop anyone, it will just make him a few more quid!! Its the same as speed camera's...they don't want to stop people speeding, otherwise they would reduce the amount of points before a ban (after all, no-one can complain because there is no excuse for speeding (we'll ignore my 9 points for now!))...they just want us to pay our fines.

So this is basically him admitting that he can't think of anything clever enough to stop the practice (IR35 doesn't seem to be working too well!), so he is just going to up it a little instead...

So...in summary...cock!

[Flat Eric]

So...in summary...cock!

I do love a well reasoned analysis...

I'm not complaining. I think Gordo can go and stick his head up a Glaswegians arse and yodel Flower Of Scotland ....

[Maxamus]

well the cock isnt getting any extra money from me. Im making sure my operating costs are going up!!

Time to change the mobile phone to the companies name
Time to start renting 1 room in my mothers house for an office
Time to get some compliments slips printed
Time to get some headed paper printed
Time to get a new laptop for site work

Did i miss anything...?

[VectraMan]

Your ordinary man in the street probably thinks income tax is now 20% (or will be), but of course that's not all the tax on your income as it doesn't count NI. It seems to me that NI is just a big scam to make income tax look lower than it really is.

Maybe olde Golden Brown thinks that if we see income tax being lower than corporation tax we'll all give up on the idea of incorporating as it isn't worth it right? But the truth is we're all still much better off paying low salary/dividends because of NI. I bet more than a few contractors will fall for that.

[thunderlizard]

I must be the only person who thinks that corporation tax thing made sense. Having corp. tax hop from 19% to 30% once your turnover hit £350000 was just bizzare. 22% to 28% is a lot smoother!

[Diestl]

I welcome the small biz tax rise, IF it is a substitution for IR35.

[morphman]

welll, its just more encouragement to close your business down every few years, and get it all back as taper releif and CGT allowances.
plus, you can re-assign shares of your new business when it is formed to your partner/family to suit your needs in order to maximise dividend amounts using both your tax brackets lol.

[Jog On]

well the cock isnt getting any extra money from me. Im making sure my operating costs are going up!!

Time to change the mobile phone to the companies name
Time to start renting 1 room in my mothers house for an office
Time to get some compliments slips printed
Time to get some headed paper printed
Time to get a new laptop for site work

Did i miss anything...?

Yeah an electric scooter and a Toyota Prius "fleet department" - got to be green of course!

Add to that business trips to places like the Cayman islands to look for investment properties and possibly new headquarters (by boat of course).