Petition to get the gov to reconsider the dividend tax changes

[d000hg]

Need help finding the ignore button?

Meh. The entitled rich.

[ItRYmyBEst]

It's even worse on a £500K dividend.

No one in the real world gives a tulip. Those buying their 70" flat screen telly from Bright House, whilst doing the weekly shop on a credit card and funding the shortfall with Wonga aren't really going to cry buckets about it and us.

thats hilarious

[ItRYmyBEst]

The point being that Mr-Small-Guy does not have the options open to him to fake a loss that is open to large corporations.

The current dividend benefit allows him to pay himself a decent wage at the same time as growing his small business that one day, just could, rival the bigger business. It rewards him for taking a risk.

Changing the dividend tax takes away that tiny benefit.

Look at your local Coffee shop. Run by a local business man, contributing to his area. He pays tax at 18% on his profits. Starbucks next door ..... well they only declared their first profit in 17 years in the UK this year, due to public pressure. They paid £200k tax on £300M of sales in the UK.

Half a dozen contractors pay more in income tax to HMRC than Starbucks. Is that right? Or fair?

sheesh thats shocking

[meridian]

sheesh thats shocking

Yep, shocking that on a forum of contractors there are still people here who think tax is paid on sales, and not profits.

[AtW]

Well, the Govt has answered the petition -

The Government is committed to supporting entrepreneurs and a fair tax system. Dividend tax reform allows further cuts in Corporation Tax and reduces the incentives for tax motivated incorporations.

The Government is fully committed to supporting business and entrepreneurship. As set out at the Summer Budget 2015, the Government believes that one of the best ways to support growth and enterprise in the UK is through lower and more competitive Corporation Tax rates.

Owners of small companies will also benefit from a range of other measures announced at the Summer Budget, including an increase in the National Insurance Employment Allowance to £3,000 from April 2016 and a permanent increase to the Annual Investment Allowance to £200,000 from January 2016. They will also pay less tax as a result of the increases to the tax-free Personal Allowance to £11,000 and to the Higher Rate Threshold to £43,000 in April 2016. We also have a commitment to go much further, taking the Personal Allowance to £12,500 and the Higher Rate Threshold to £50,000 by the end of this Parliament.

However, it is not possible to continue to reduce the Corporation Tax rate without looking at the overall balance of the tax system, including taxation of dividends. Lowering the Corporation Tax rate without action elsewhere increases incentives for individuals to set up a company and pay themselves through dividends to reduce their tax bill (also known as tax motivated incorporation). Therefore the Government is reforming dividend taxation. These reforms, which will also simplify the dividend tax system, will significantly reduce the incentives for people to set up a company and pay themselves through dividends rather than wages simply to reduce their tax bill. Taxpayers and the Exchequer will now be £500 million better off as result of reduced incentives for tax motivated incorporation. Those who choose to work through a company continue to pay lower rates of tax than the employed or self-employed. But the reforms move the overall tax rates for the self-employed and those incorporated closer together, making the system fairer overall.

HM Treasury

So, essentially they are saying that reducing Corp Tax very slowly over period of 5 years was just a con, so they had to increase tax on same money lower down the chain and increase much more than they reduced Corp Tax.

It's particularly BAD deal for small companies with under 300k profits - they had small profits rate kept at the same level, so with dividends tax there is a massive hike on SMALL companies.

Medium UK companies are also shafted because they won't be quoted on stock exchange and their shareholders are likely to be local UK residents.

Very big multinationals don't pay corp tax anyway, but they will grateful for reduction to 18%. Big shareholders on those could be from abroad (or use offshore vehicle to own shares), so dividend tax does not affect them.

Can't believe I voted for those

P.S. It's particularly amusing to see how they tout increase of personal allowance (which resulted in reduction in high rate threshold), and for those getting over £100k it just means their 60% tax level will last longer.

P.P.S. It was MUCH better under Labour with 28% corp tax and 40% income tax rate level dividend tax, thanks Tory Scum.

[MarillionFan]

Well, the Govt has answered the petition -



So, essentially they are saying that reducing Corp Tax very slowly over period of 5 years was just a con, so they had to increase tax on same money lower down the chain and increase much more than they reduced Corp Tax.

It's particularly BAD deal for small companies with under 300k profits - they had small profits rate kept at the same level, so with dividends tax there is a massive hike on SMALL companies.

Medium UK companies are also shafted because they won't be quoted on stock exchange and their shareholders are likely to be local UK residents.

Very big multinationals don't pay corp tax anyway, but they will grateful for reduction to 18%. Big shareholders on those could be from abroad (or use offshore vehicle to own shares), so dividend tax does not affect them.

Can't believe I voted for those

P.S. It's particularly amusing to see how they tout increase of personal allowance (which resulted in reduction in high rate threshold), and for those getting over £100k it just means their 60% tax level will last longer.

P.P.S. It was MUCH better under Labour with 28% corp tax and 40% income tax rate level dividend tax, thanks Tory Scum.

Go to bed, no-one is on CUK at this time.

[AtW]

How much worse can it possibly be under Korbyn?

[AtW]

Go to bed, no-one is on CUK at this time.

Can't afford it mate, I have to work now twice as hard to afford this sort of taxation

[AtW]

Gideon certainly taxed far more than Ed Balls planned - 50% tax return, and cancelled 1% drop in corp tax with possible increase a bit later (which I think they would not have done soon to show how pro business they are).

[AtW]

What's really insulting is that this sort of behavior is expected from Labour, but supposedly Conservative Chancellor outdone them, all hoping that the working man will vote for him in 2020.