Dividends beyond £5k taxed wef 2016!!

[Contreras]

Only PSCs, Shirley?

It's any dividends. So if you have received £1k income from your BP/Shell/whatever shares then there is £4k allowance left for yourco divvies.

Watch now as listed co's increase the use of B/C shares etc. to enable investors to take profits as capital gain instead of dividends.

The £5k allowance is, I think, clearly contrived with the PSC target in mind. If general investors were the target (rather than collateral damage) the allowance would have been combined with CGT allowance (~£10k), which could still happen if companies go the B/C shares route.

Personally I am not so phased by the new divvy tax (yet!), the dust is still to settle and it looks partially mitigated by the reduction in CT.

Another thing, the divvy tax is a certainty. IR35 was/is uncertain. The divvy tax applies to all contractors and market rates can and will have to adjust. Unlike IR35 which simply spawned an industry of FUD profiteers and risk avoidance.

I am much, much, more concerned about the way the landscape seems to be panning out re FLC's. -

Branson started in a phone box and record listening booth. No I don't want to be Branson. But why should anyone be denied the opportunity by a lying, snake oil selling government that says it's on the side of small business but really, could give a flying fig really as long as they can carry on doing it but the ordinary person is effectively dissuaded from doing so?

And having taken the plunge, why should anyone who is up for the risk be less advantaged than any other business person?

WHS

[AtW]

Personally I am not so phased by the new divvy tax (yet!), the dust is still to settle and it looks partially mitigated by the reduction in CT.

In 2017 and 2020. And in 2021 there will be new taxes because every new fooking elected Govt does it at the start of Parliament as a thank you to those who have elected them.

Might as well have kept 50% rate of tax ffs.

The whole point of a business is that it generates profits in a form of dividends and also it can be sold (multiple of dividends, extra taxing of which would reduce value of business). It's not a business if you just pay yourself salary, and the whole point of getting a successful business is to make more than 40% threshold. So this tulip that Georgie pulled for me ranks up there with abolition of taper relief for CGT, so now people will be using up Entrepreneurs Relief even more aggressively which inevitably would result in it being pulled, for fairness sake of course!

[mudskipper]

Another thing, the divvy tax is a certainty. IR35 was/is uncertain. The divvy tax applies to all contractors and market rates can and will have to adjust. Unlike IR35 which simply spawned an industry of FUD profiteers and risk avoidance.

I am much, much, more concerned about the way the landscape seems to be panning out re FLC's. -

I also think the expenses thing could cripple a lot of contractors.

[PurpleGorilla]

I also think the expenses thing could cripple a lot of contractors.

Sorry missed that, what's the score regarding expenses?

[mudskipper]

Sorry missed that, what's the score regarding expenses?

http://forums.contractoruk.com/accou...bsistence.html

Looks like it won't affect those outside IR35, but that's prior to the expected 'clarifications'

[PurpleGorilla]

http://forums.contractoruk.com/accou...bsistence.html

Looks like it won't affect those outside IR35, but that's prior to the expected 'clarifications'

So delivering for multiple clients at multiple locations, through a reg ltd co, with staff (co sec), website, and other legitimate consultant costs and insurances (which are not cheap), also associations with other businesses, representing the business at prof conferences etc, is not a legitimate business in hmrc's eyes for claiming mileage. What a load of [emoji90][emoji90][emoji90][emoji90][emoji90]

[SueEllen]

So delivering for multiple clients at multiple locations, through a reg ltd co, with staff (co sec), website, and other legitimate consultant costs and insurances (which are not cheap), also associations with other businesses, representing the business at prof conferences etc, is not a legitimate business in hmrc's eyes for claiming mileage. What a load of [emoji90][emoji90][emoji90][emoji90][emoji90]

Nope.

They need more tax to pay pensioners so they have to target more working people.

On the other hand I have met some pensioners who get a lot of dividends.....

[The Spartan]

Nope.

They need more tax to pay pensioners so they have to target more working people.

On the other hand I have met some pensioners who get a lot of dividends.....

Funnily enough me too, my grandparent receives about 15k in dividends a year from their various investments so from next year they'll have to stump up the extra cash, thing is though don't you only have to send a SATR if you receive over 10k in dividends, so how are they going to manage the payment side of things?

[mudskipper]

Funnily enough me too, my grandparent receives about 15k in dividends a year from their various investments so from next year they'll have to stump up the extra cash, thing is though don't you only have to send a SATR if you receive over 10k in dividends, so how are they going to manage the payment side of things?

Should be OK if it's in a SIPP - if it isn't, then might be worth starting to move investments over up to the annual limits.

[SimonMac]

They should have a type of Ltd. company with no CT, no accounts to file etc., where all you need to do is pay yourself what you want when you want and fill out a tax return once a year.

That's called being self employeed!