More doom - dividend allownce is inside tax bands

[AtW]

Nothing to stop you doing the same

You need to be a non-dom.

[fullyautomatix]

So, this dividend tax then, it only hits disguised employees ? It doesn't hit incorporated businesses of all types ?

Only hits the IT contractors working as disguised employees who have created a disguised company and have been giving themselves disguised dividends instead of salaries.

[AtW]

Only hits the IT contractors working as disguised employees who have created a disguised company and have been giving themselves disguised dividends instead of salaries.

It hits me too, badly, and I am not the person you described above - every successful small business owner is hit very hard, my tax rate will effectively go up by 30% and will actually be worse when Labour was in with 50% income tax (and appropriate increase in dividends tax).

What will happen next is that the people you described above will start shutting down companies to claim ER - easy to predict really, so Treasury will most certainly do something very bad about it very soon, probably even in pre-budget in Nov/Dec, note that Osborne did not change Capital Gains at all, that's not a sign that it will stay at that level, they just did not make up their mind at the time, but they sure will soon and that would hit small business owners even harder.

All in all I am 200% confident that I would have been much better off under Ed Miliband with 50% tax.

[The Spartan]

Nothing to stop you doing the same

Surely that can't be legal?

[AtW]

Surely that can't be legal?

Legal if you are non-dom - rich enough to pay one off flat tax per year and avoid paying any taxes on your foreign income - from an offshore company that owns UK shares.

So the really rich are OK.

[The Spartan]

Legal if you are non-dom - rich enough to pay one off flat tax per year and avoid paying any taxes on your foreign income - from an offshore company that owns UK shares.

So the really rich are OK.

Thanks AtW, so unlike what Platypus there is a lot to stop contractors from following the same setup

[AtW]

Thanks AtW, so unlike what Platypus there is a lot to stop contractors from following the same setup

Everything You Need To Know About Non-Doms

It's £90k annual cost to those who live in UK over 17 years and no tax on your foreign earnings.

I could have become non dom fairly easily I reckon, but that would not be honest.

[OwlHoot]

Is that the same as saying you pay dividend tax and income tax on the same money (as well as it being taxed under CT) or does it simply saying the first £5k doesn't count as an "additional allowance" as some hoped?

It's the same as saying the EU Commission is trying to "harmonise the corporate tax base" across Europe :

EU Commissioner calls on Ireland to engage with tax harmonisation

and it looks like, as always, Spoonface and co have secretly caved in and are going along with it behind the scenes ...

(despite the planned EU referendum, if this ever happens)

It's really quite simple: If you don't like these planned tax changes then you don't like the EU, as it is the EU that is driving them.

[d000hg]

Of course they are, it's just that we're not 1%ers and therefore don't matter.

Tug your forelocks, peasants.

If you were in the 1% you'd just change it to be "they help only the top .1%" Victim mentality, in other words.

So, this dividend tax then, it only hits disguised employees ? It doesn't hit incorporated businesses of all types ?

It affects regular businesses but the impact is less.

[TestMangler]

If you were in the 1% you'd just change it to be "they help only the top .1%" Victim mentality, in other words.

It affects regular businesses but the impact is less.

How do you work that out ?