More doom - dividend allownce is inside tax bands

[Platypus]

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

There is nothing to stop you setting up an offshore company which owns the shares in yourco and takes all the dividends. Anyone can do that. I don't think I deserve a facepalm.

The problem is getting the money back in to the UK while minimising tax. If you are a non-dom you can legally avoid paying tax on your foreign income. If you're not, then you need to pay income tax on it or evade tax altogether, which of course I could never advocate. I did read some years ago that some people did this by either bring cash back in to the country or getting their offshore bank to issue them a debit card and they put all spending on that. However I believe that the latter is no longer passible because Visa and mastercard share information with tax authorities and you'll get caught.

[d000hg]

How do you work that out ?

Maffs

[TestMangler]

Maffs

Clearly not your strong point then.....

[d000hg]

Clearly not your strong point then.....

It's ironic to call someone stupid when you're too stupid to understand them.

Do you really need me to spell it out for you? Come on, even a tester should have enough brains for this.

[SueEllen]

Cheers all. So not just late but a week late So who voted these bastards in then?

Not me but my MP is a Tory......

Regardless how I voted my vote would be wasted in my constituency.

[TestMangler]

It's ironic to call someone stupid when you're too stupid to understand them.

Do you really need me to spell it out for you? Come on, even a tester should have enough brains for this.

First, I am not or never have been, a tester.

And yes, I do need you to spell it out. How does a percentage based dividend tax hit a contracting business harder than any other business ?

[The Spartan]

There is nothing to stop you setting up an offshore company which owns the shares in yourco and takes all the dividends. Anyone can do that. I don't think I deserve a facepalm.

The problem is getting the money back in to the UK while minimising tax. If you are a non-dom you can legally avoid paying tax on your foreign income. If you're not, then you need to pay income tax on it or evade tax altogether, which of course I could never advocate. I did read some years ago that some people did this by either bring cash back in to the country or getting their offshore bank to issue them a debit card and they put all spending on that. However I believe that the latter is no longer passible because Visa and mastercard share information with tax authorities and you'll get caught.

Fair point I revoke the facepalm, thanks for the explanation

[SueEllen]

First, I am not or never have been, a tester.

And yes, I do need you to spell it out. How does a percentage based dividend tax hit a contracting business harder than any other business ?

Agreed
I've heard other business people who aren't IT or knowledge workers complain about it.

[TestMangler]

Agreed
I've heard other business people who aren't IT or knowledge workers complain about it.

Crrect. As well as having a 'contracting' LTD, I have two others, unconnected to contracting. the effect is exactly the same.

If Doohg The Headcase was talking about T&S, there is a difference, but the dividend tax hits every small incorporated business in exactly the same way, regardless of sector.

[SueEllen]

Crrect. As well as having a 'contracting' LTD, I have two others, unconnected to contracting. the effect is exactly the same.

If Doohg The Headcase was talking about T&S, there is a difference, but the dividend tax hits every small incorporated business in exactly the same way, regardless of sector.

It hits everyone who gets their income from dividends regardless of their situation.