A daft question, but where are the break points for 7.5, 32.5 and 38.1% dividend tax?
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Dividends beyond £5k taxed wef 2016!!
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Originally posted by PerfectStorm View PostYou forget the 10,600, 11,000 and 12,500 personal allowances for various years, and the lift of the higher rate from 42385 to 43000 up to 50,000 eventually
Can't wait for someone to do some real calculations on this.
Full text of budget - https://www.gov.uk/government/upload...Accessible.pdfComment
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Originally posted by DaveB View PostCould be worse, if you can keep your combined divi and salary payments below the Higher rate (£42,385 atm) threshold then yes you will pay more, but it's not catastrophic. 7.5% rather than 32.5%.
What it will lead to is more income shifting with partners taking divi's up to the limit as well as this will still be the best way to minimise tax due.
NI allowance is going up to £3000 as well, so there may be some room for mitigation based on that.Comment
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Originally posted by Contractoid View PostIf you are in high rate threshold it works out at £2,400 extra income tax than you were paying under the old system. Not brilliant butcouldwill definitely be worse once the concept is accepted as mainstream when they can vary the rates any time they want to!
It seems HMRC have their wish, after years of banging on about PSCs, everyone including the accountants, journos and even contractors have accepted the definition and classification of PSC without any legality and can now legislate without touching close companies legislation and peeing off the other SME and family businesses.
It's time it went to court.Last edited by tractor; 8 July 2015, 14:06.Comment
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FFS, tax credit should have been the exact amount of corp tax the company paid (plus NICs plus income tax generated from employment), ffs, I blame dirty tax dodgers and their schemes for this removal of dividend tax credit.Comment
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Originally posted by Stevie Wonder BoyEven on the higher rate, 32.5% + 20% corporation tax is 52.5%,Comment
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Contractors all need to increase their rates slightly.Originally posted by MaryPoppinsI'd still not breastfeed a naziOriginally posted by vetranUrine is quite nourishingComment
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Originally posted by Stevie Wonder BoyEven on the higher rate, 32.5% + 20% corporation tax is 52.5%, still less than 40% + 13.5% company NI ...
Wow a 1% risk premium for running your own business ...generous ... lol...
I wonder if this will apply to partnerships, LLC's etc ... Also will be interesting to see what our esteemed professional cover organisation IPSE has to say. Nice work you totalComment
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Originally posted by Stevie Wonder BoyEven on the higher rate, 32.5% + 20% corporation tax is 52.5%, still less than 40% + 13.5% company NI ...
Wow a 1% risk premium for running your own business ...generous ... lol...
I wonder if this will apply to partnerships, LLC's etc ... Also will be interesting to see what our esteemed professional cover organisation IPSE has to say. Nice work you totalComment
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Originally posted by PerfectStorm View PostA daft question, but where are the break points for 7.5, 32.5 and 38.1% dividend tax?
£0 - £5000 = 0%
£5000 - £43000 = 7.5%
£43,000 - £150,000 = 32.5%
£150,000+ = 38.1%Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
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