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Petition to get the gov to reconsider the dividend tax changes

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  • AtW
    replied
    Originally posted by VectraMan View Post
    Why no employer's NI? That makes no sense.
    Why the fook business even pays employer's NI??? Business provides JOBS, why the fook should it pay tax on employment??? What the fook exactly is insured by that payment for the business, what's the benefit to the business that fooking employer insurance gives exactly???

    Leave a comment:


  • tomtomagain
    replied
    Originally posted by Ticktock View Post
    Can you explain the extra taxes you are having to pay that larger businesses don't? It's not Corp Tax, it's not VAT... do you have much T&S to claim?

    Or do you mean "I have to pay tax on some of my dividends"? If so, this isn't a cost of doing business that will affect your competition with other businesses.
    Large companies employ very aggressive measures to minimise their tax rate. Something that a small company just cannot do.

    For example, lets pretend you start a coffee shop. You buy your beans and cups from a local supplier, sell coffee to the public and pay tax at 18% on the profit.

    If you are an international well funded coffee chain you can do this.

    Buy your beans from a wholly owned subsidiary in a low cost location at a premium rate and therefore minimise your profits whilst effectively shipping the money you take from your customers outside of the country.

    You can also "Rent" your own brand from the same jurisdiction - again cutting down your declared profit.

    And you can base your companies European operations somewhere like Luxembourg or Ireland and declare that to be your primary location whilst deriving 90% of your income from other locations within Europe.

    I know a lawyer who works for a a very well-known US online retailer. She works in Luxembourg apparently. But the funny thing is I see her most days dropping her kids off to school in the Oxfordshire village where I live. Must do a lot of WFH. I wonder where her salary is being paid from?

    Leave a comment:


  • AtW
    replied
    Originally posted by pr1 View Post
    maybe at 7.5%, what about at 10%? 12.5%? 15%? What about if the 5k free limit reduces to zero?
    it's not going to happen, but the time to challenge it is now, not when it's been introduced and they start creeping it up 1 or 2% per year
    (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)
    edit: I'm also not signing the petition
    It's obvious that the dividends rate will tend to reach income tax levels. Why should people who have shares (which obviously means they are wealthy) pay less than a working man? So the dividend rates will be 20%, 40% and 45%, possibly 50% under Labour.

    Leave a comment:


  • LondonManc
    replied
    Originally posted by d000hg View Post
    For once we're in agreement on something. Voting on a petition is the equivalent of a FaceBook like.
    Are they worth more or less than a CUK like or thank though?

    Leave a comment:


  • Ticktock
    replied
    Originally posted by DimPrawn View Post
    I'm in a similar position to you. I sell and rent software as a service. I have spent years part time developing this and now I'm fulltime on it. Suddenly I'm not a proper business anymore and I have to pay more tax that my bigger competitors don't.

    I am going to keep the money in the company, and not pay dividends and cut outgoings to the bone. **** the govt and **** the economy. If it takes off and becomes successful, I will take the business and myself offshore somewhere and ensure UK gov gets **** all of the proceeds.

    Tories are the govt of small business.....s
    Can you explain the extra taxes you are having to pay that larger businesses don't? It's not Corp Tax, it's not VAT... do you have much T&S to claim?

    Or do you mean "I have to pay tax on some of my dividends"? If so, this isn't a cost of doing business that will affect your competition with other businesses.

    Leave a comment:


  • d000hg
    replied
    Originally posted by DimPrawn View Post
    Petition is pathetic. You may as well start one about what a rip-off main dealer Porsche servicing costs are.

    Better if each director wrote a letter to their MP
    For once we're in agreement on something. Voting on a petition is the equivalent of a FaceBook like.

    Leave a comment:


  • DimPrawn
    replied
    Originally posted by tomtomagain View Post
    The problem I see with this change is it discourages investment by small business owners in their businesses.

    In my own particular circumstances I run a small LTD company ( it's just me ) selling a software product that I wrote and a subscription to a "SAAS" version of my product ( that I also wrote with help ).

    My SAAS product is new and I have committed at least £30k of the money that I earned from selling my original software product to it this year. It has started to gain some traction and is bringing in some revenue each month but has not recouped the original investment to date. I plan to commit at least another 30k to it next year.

    That 30k I could have just put in my pocket but instead I spent it with a variety of local suppliers. This is classic business investment and very much done "At Risk".

    I take a standard salary/dividend mix to pay for my living expenses ( wife, 4 kids, etc ).

    The current arrangement lowers my tax bill. It allows me to invest in the company whilst still providing adequately for my family.

    Next year my tax bill goes up. This is not something that I object to in itself. If Osborne gets the deficit down and the countries finances straight then that is something I would support. Otherwise my kids will be paying it off in 30 years time.

    The fact is that next year I will have less disposable income. So something has to give. Either my family gets less OR my suppliers get less.

    As a rule I put my family first. So my suppliers will be taking the hit.

    The main supplier to take the hit is the local business centre as I was planning on moving into an office there. They'll get less income, which means they'll have less profit and therefore pay less tax.

    And this is why the change is dumb. Not because it's "unfair" but because it puts the breaks on small companies expanding. It is small companies growing today that create the large companies of tomorrow, creating the high-skilled jobs and stable tax-base that the country needs.
    I'm in a similar position to you. I sell and rent software as a service. I have spent years part time developing this and now I'm fulltime on it. Suddenly I'm not a proper business anymore and I have to pay more tax that my bigger competitors don't.

    I am going to keep the money in the company, and not pay dividends and cut outgoings to the bone. **** the govt and **** the economy. If it takes off and becomes successful, I will take the business and myself offshore somewhere and ensure UK gov gets **** all of the proceeds.

    Tories are the govt of small business.....s

    Leave a comment:


  • tomtomagain
    replied
    The problem I see with this change is it discourages investment by small business owners in their businesses.

    In my own particular circumstances I run a small LTD company ( it's just me ) selling a software product that I wrote and a subscription to a "SAAS" version of my product ( that I also wrote with help ).

    My SAAS product is new and I have committed at least £30k of the money that I earned from selling my original software product to it this year. It has started to gain some traction and is bringing in some revenue each month but has not recouped the original investment to date. I plan to commit at least another 30k to it next year.

    That 30k I could have just put in my pocket but instead I spent it with a variety of local suppliers. This is classic business investment and very much done "At Risk".

    I take a standard salary/dividend mix to pay for my living expenses ( wife, 4 kids, etc ).

    The current arrangement lowers my tax bill. It allows me to invest in the company whilst still providing adequately for my family.

    Next year my tax bill goes up. This is not something that I object to in itself. If Osborne gets the deficit down and the countries finances straight then that is something I would support. Otherwise my kids will be paying it off in 30 years time.

    The fact is that next year I will have less disposable income. So something has to give. Either my family gets less OR my suppliers get less.

    As a rule I put my family first. So my suppliers will be taking the hit.

    The main supplier to take the hit is the local business centre as I was planning on moving into an office there. They'll get less income, which means they'll have less profit and therefore pay less tax.

    And this is why the change is dumb. Not because it's "unfair" but because it puts the breaks on small companies expanding. It is small companies growing today that create the large companies of tomorrow, creating the high-skilled jobs and stable tax-base that the country needs.

    Leave a comment:


  • Ticktock
    replied
    Originally posted by motoukenin View Post
    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.
    I'd guess it's because -
    Most Contractors don't pay out 100K dividends
    Most(?) Contractors don't object to the principle of paying taxes for public services
    Most(?) Contractors understand that the dividend tax is a tax on the income they choose to take from their company, and although the increase means they will be paying more tax, they are still better off than most permie.

    Actually, maybe that's just me.

    The changes to expenses concern me more. In effect these punish me personally for my company doing business, whereas both employers and employees of large companies are not affected.
    Some examples, over the past couple of years I've had:
    6 months of weekly travel from Hampshire to Edinburgh - flights, accomodation and subsistence claims.
    3 months of 60 mile round trip daily commute - mileage and subsistence claims.
    3 months of 150 mile round trip daily commute - mileage, subsistence and occasional accomodation (where I've had to be available early morning the next day) claims.

    Leave a comment:


  • LondonManc
    replied
    Originally posted by motoukenin View Post
    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.
    Offset it against the Corporation Tax improvements and it's not significant. If you have to now get Tesco Value Caviar tough tulip.

    Leave a comment:

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