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Petition to get the gov to reconsider the dividend tax changes

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    #41
    Originally posted by pr1 View Post
    (I'm only playing devils advocate, I think we should all pay PAYE but no employers NI, which I think the div tax will align to in the near future)
    Why no employer's NI? That makes no sense.

    If you're genuinely in business you should be free to act like a business which just happens to have one employee. Which means the employee pays the full amount of tax on what they actually earn, and the business is free to keep profits in the company to smooth out any future peaks and troughs. The worse thing about IR35 is that it taxes you on the company's income for that year whether you've personally earned it or not. They should sort that out, get rid of the reporting requirements of one man companies (and so saving us all money spent on accountants), and apply the expenses rules in a way that treats permies and contractors equally, and I'd think that would be fair to all.
    Will work inside IR35. Or for food.

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      #42
      Originally posted by pr1 View Post
      nluk's implication was that it didn't matter because it wouldn't affect his lifestyle (i.e. not based on fair/unfair)
      No it wasn't, that's your interpretation. It's a minor issue compared to the other two factors - the expenses issue limits many people geographically (in terms of what is financially viable) and the agency/IR35 issue hits everyone massively. Given most contractors are advised to pay minimal wages and take the rest as dividends, paying more dividend tax is far less restricting of his contracting lifestyle.
      The greatest trick the devil ever pulled was convincing the world that he didn't exist

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        #43
        Paying both sides of NI doesn't really make sense either. We may legally be a company with one person but most of us aren't necessarily employees of our companies anyway and the fact is, a Ltd is just a convenience/necessity for contractors. A special 1-ban-band/PSC setup could make sense, since/provided one could transition to a regular Ltd easily if you end up being more of a 'proper' business. Or some sort of protection for sole traders so that agencies/clients are not scared of using them.
        Originally posted by MaryPoppins
        I'd still not breastfeed a nazi
        Originally posted by vetran
        Urine is quite nourishing

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          #44
          Originally posted by d000hg View Post
          Paying both sides of NI doesn't really make sense either. We may legally be a company with one person but most of us aren't necessarily employees of our companies anyway and the fact is, a Ltd is just a convenience/necessity for contractors. A special 1-ban-band/PSC setup could make sense, since/provided one could transition to a regular Ltd easily if you end up being more of a 'proper' business. Or some sort of protection for sole traders so that agencies/clients are not scared of using them.
          Straight out of the New Lie wankiness of business handbook.

          No, how about feck off, I run a proper legal limited liability company in the same way as anyone else. It is not a PSC or other such meaningless bulltulip. It is a VAT registered, tax paying business, that takes risk, performs services, submits invoices, hopes for payment, sends in the legals for non payment, just like every other business.

          Go **** yourself with your bulltulip.

          HTH BIDI

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            #45
            You can write "President and CEO" on your YourCo business card, it doesn't change the facts.

            A Ltd is NOT the most sensible structure for a contractor, we use them because it's the most efficient way of working not because we want to start up a business. Contractors decide "I want to go contracting" not "I want to run a business".
            Originally posted by MaryPoppins
            I'd still not breastfeed a nazi
            Originally posted by vetran
            Urine is quite nourishing

            Comment


              #46
              Originally posted by d000hg View Post
              You can write "President and CEO" on your YourCo business card, it doesn't change the facts.

              A Ltd is NOT the most sensible structure for a contractor, we use them because it's the most efficient way of working not because we want to start up a business. Contractors decide "I want to go contracting" not "I want to run a business".
              YOU might do that. Go use an umbrella company or go permie. Tard.

              Comment


                #47
                Originally posted by VectraMan View Post
                Why no employer's NI? That makes no sense.

                If you're genuinely in business you should be free to act like a business which just happens to have one employee. Which means the employee pays the full amount of tax on what they actually earn, and the business is free to keep profits in the company to smooth out any future peaks and troughs. The worse thing about IR35 is that it taxes you on the company's income for that year whether you've personally earned it or not. They should sort that out, get rid of the reporting requirements of one man companies (and so saving us all money spent on accountants), and apply the expenses rules in a way that treats permies and contractors equally, and I'd think that would be fair to all.
                "The worse thing about IR35 is that it taxes you on the company's income for that year whether you've personally earned it or not"

                no, it doesn't, you can have inside IR35 and outside IR35 contracts running coincidentally

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                  #48
                  Originally posted by d000hg View Post
                  You can write "President and CEO" on your YourCo business card, it doesn't change the facts.

                  A Ltd is NOT the most sensible structure for a contractor, we use them because it's the most efficient way of working not because we want to start up a business. Contractors decide "I want to go contracting" not "I want to run a business".
                  We use them because the law was changed back in the 1970's in a way that meant the only way we could work was via a limited company.

                  If you don't understand the history of this its best not to comment.

                  The tax advantages or disadvantages are a sideline. We work this way because we aren't employees and don't really want to be employees.
                  merely at clientco for the entertainment

                  Comment


                    #49
                    Originally posted by LondonManc View Post
                    No it wasn't, that's your interpretation. It's a minor issue compared to the other two factors - the expenses issue limits many people geographically (in terms of what is financially viable) and the agency/IR35 issue hits everyone massively. Given most contractors are advised to pay minimal wages and take the rest as dividends, paying more dividend tax is far less restricting of his contracting lifestyle.
                    yes, i feel you're missing my point

                    i agree it is a lot less significant than the other two factors

                    my point is, if the other two factors were not factors - would people be on here complaining about the dividend tax increase (i.e. would this petition have got 100k signatures in a couple of days)

                    it was a ponderous question, i dont really care about the answer

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                      #50
                      Cant believe the number of contractors I have spoken to that think the increase in dividend tax is negligible , on 100K dividend its another 6K , approx 30% increase in taxes paid and that's without all of the other things we will be dealing with like increased NI , tax on expenses , etc. etc. thinking of working abroad for a few months and then coming back here to live off the profits and then repeat.
                      Warning unicorn meat may give you hallucinations

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