Official Summer 2015 Budget Thread

[SimonMac]

So it sounds like, if we take out most of our money - not just up to the higher rate limit, then we're going to be very significantly worse off.

Define significatly?

We are still better off than permies

[MicrosoftBob]

Aye, that sounds about right, same ball park as Underbase.

2% less corp tax though. What the chancellor giveth, the chancellor taketh away.

Does that 2% less corp tax apply to the small companies corp tax rate though ?

[tarbera]

In English?

We have been thrown under a bus

[Unix]

Define significatly?

We are still better off than permies

Always, permies are wage slave morons with no backbone. While we are entrepreneurs directors of Ltd companies

[Underbase]

One question if the NI allowance of 2k (going up to 3) is removed for sole director sole employee. What if the wife is 50% owner and does the books with the odd bit of contracting.

[SpontaneousOrder]

Define significatly?

A personal allowance move of a few hundred quid here and there makes the difference of a coupe of bottles of bolly a year.

This, if you take out lets say 70k a year, is closer to a a couple of nice holidays abroad per year.

We are still better off than permies

That depends. It's always been a trade-off between employment rights, etc, and financial control. That trade-off is looking less equitable now.

[DimPrawn]

One question if the NI allowance of 2k (going up to 3) is removed for sole director sole employee. What if the wife is 50% owner and does the books with the odd bit of contracting.

It means you will be better off, and so will she, when she divorces you.

[hurtle]

Significantly = 7.5% above £5,000.

The key point in the budget isn't the new rates, but the removal of the dividend tax credit, so for people who take dividends above the higher limit the 32.5% rate replaces the (effective) 25% rate.

[escapeUK]

That depends. It's always been a trade-off between employment rights, etc, and financial control. That trade-off is looking less equitable now.

Yes. Add all those paid holidays, sick pay, maternity scam and the balance looks less exciting.

[FarmerPalmer]

So it sounds like, if we take out most of our money - not just up to the higher rate limit, then we're going to be very significantly worse off.

20% CT + 7.5% Dividend = 29.375% (over 5K and upto 40% tax threshold)
20% CT + 32.5% Dividend = 60% (between 40% and 45% threshold)
20% CT + 38.1% Dividend = 67.6% (over 45% threshold)

Note dividend tax is on 80% of the total after paying the 20% CT, so multiply by 1.25 to get effect on the total

Treasury may get a huge bonus this year as people empty their companies coffers before it takes effect.