Dividends beyond £5k taxed wef 2016!!

[PerfectStorm]

So here's a question. Don't we currently get this tax credit system where each £1000 actually drawn net from the company, counts as £1100 from your personal allowance (or similar, I haven't thought about this since last year)? Does that whole aspect of things disappear entirely in the new system and if so how does that affect things? I haven't seen this part taken into consideration but I may have misunderstood and it makes no difference?

I believe in the speech Osborne specifically made reference to the dividend tax credit being gotten rid of (replaced by the 5k allowance thing), yes.

[d000hg]

I believe in the speech Osborne specifically made reference to the dividend tax credit being gotten rid of (replaced by the 5k allowance thing), yes.

Doesn't that mean you can take more out of your Ltd before hitting the upper tax threshold then?

[jamesbrown]

Doesn't that mean you can take more out of your Ltd before hitting the upper tax threshold then?

Yes, but you'll then have the roughly ~2k additional tax to pay, so less overall. This isn't a vast change in the scheme of things (e.g. currency fluctuations could cost the average contractor more), but it sets the direction of travel, with various reviews and future budgets on the horizon, i.e. it doesn't bode well.

[AtW]

Yes, but you'll then have the roughly ~2k additional tax to pay, so less overall. This isn't a vast change in the scheme of things (e.g. currency fluctuations could cost the average contractor more), but it sets the direction of travel, with various reviews and future budgets on the horizon, i.e. it doesn't bode well.

This would have never happened under Labour.

[ZARDOZ]

This would have never happened under Labour.

I was much better off under Labour. This lot are the party of vested interests only shame on the idiots who fell for the spin.

7.5% starting rate now how.many years before 15% then 20?


They won't be happy until being a contractor is less than being a permie. Same or less money but no benefits. Fill the positions with FTVs and jobs a good un. Hang on we best build some more houses on the green belt to accommodate them. Meanwhile the big consultancies can have anything they want in return for.a large donation to Conservative HQ

[DimPrawn]

I wonder how much the big Bob consultancies donated to the Conservatives to get these punitive changes through?

[AtW]

I wonder how much the big Bob consultancies donated to the Conservatives to get these punitive changes through?

Eddie Millipede must be laughing his arse off right now

[MicrosoftBob]

Eddie Millipede must be laughing his arse off right now

Did he use to be somebody ????

[NorthWestPerm2Contr]

I've decided on the way I am going to combat this utter theft:
1) reduce take home pay to significantly below the upper bracket
2) build up warchest as an effective pension
3) put more money into a SIP
4) give more charitable donations and live more humbly

Still be taking home net 4-5k/month but at least won't be paying much of the 7.5% tax and the amount I do pay will be in part covered by the decrease in CT.

Go on you fooking tories, have some.

[Lockhouse]

Subject to what Nixon Williams advise me I'm maxing divvis this year then planning on paying out as little as possible in 2016 and 2017 then probably going MVL.