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Petition to get the gov to reconsider the dividend tax changes

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  • Ticktock
    replied
    Originally posted by AtW View Post
    It's one of the questions on self assessment form, did you avoid checking the box on yours because "that isn't something that legally exists yet"?
    I avoided checking the box because it went on to say something about "and operated within IR35".

    Leave a comment:


  • d000hg
    replied
    Ticking a box and having different tax structures based on that tick-box are quite different legally.

    Leave a comment:


  • AtW
    replied
    Originally posted by d000hg View Post
    Because that isn't something that legally exists yet?
    It's one of the questions on self assessment form, did you avoid checking the box on yours because "that isn't something that legally exists yet"?

    Leave a comment:


  • d000hg
    replied
    Originally posted by AtW View Post
    Why could not they limit dividend tax to Personal Service Companies then?
    Because that isn't something that legally exists yet?

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  • AtW
    replied
    Originally posted by d000hg View Post
    I think that's a silly suggestion. The dividend tax closes a loophole where company owners can pay very low tax on a high income, and the tax levels chosen make it very similar to income tax levels, which suggests that is deliberate.
    Why could not they limit dividend tax to Personal Service Companies then?

    Or why could not they limit tax to first £100k in dividends per year?

    This is even worse tax grab then when Brown raided Pension funds - there he also disallowed use of dividends tax credit, something that Conservatives criticized and now they did the same thing only for everybody, can't remember that being in their manifesto!

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  • AtW
    replied
    Originally posted by d000hg View Post
    Many people starting up their business do this at the beginning - many take no salary at all and live off savings. You never watch Dragons' Den? The hope is it's a sacrifice for a short period that will pay off.

    Didn't SKA work like that for you in the early days - coding 15 hours a day because it's your business and you can't spare the money to pay someone else?
    At start of the business there are no dividends, it took us many years to get to the point when we could pay them - taxation does not recognise backdated sacrifices as personal allowance gets lost if not used, even worse now there is no personal allowance to taxpayers like myself - no taper relief and ER can go at any time, now there is dividends tax which makes company owners to pay out money as dividends instead of keeping them in the company (just in case), so business environment got considerably worse and that's under "pro-business" Govt, at the same time old money are all right.

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  • DimPrawn
    replied
    Originally posted by d000hg View Post
    Many people starting up their business do this at the beginning - many take no salary at all and live off savings. You never watch Dragons' Den? The hope is it's a sacrifice for a short period that will pay off.

    Didn't SKA work like that for you in the early days - coding 15 hours a day because it's your business and you can't spare the money to pay someone else?

    At the other end of the spectrum, loads of small business simply don't every generate a lot of profit. Running a nice boutique teashop or similar quirky/independent business often just about makes a living for the owner but no more. A "lifestyle business" I thin it's called.
    I think a certain ex prime minister does this also. He lives on a super yacht with billionaire chums, but his company tax receipts say he makes a huge loss every year. Must be because he loves his job I guess.

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  • d000hg
    replied
    Originally posted by AtW View Post
    No, what makes it rather nasty is that dividends tax is now separate and can be easily increased at any time, it won't take long before it is aligned with income tax rates.
    I think that's a silly suggestion. The dividend tax closes a loophole where company owners can pay very low tax on a high income, and the tax levels chosen make it very similar to income tax levels, which suggests that is deliberate.

    Leave a comment:


  • mudskipper
    replied
    Originally posted by AtW View Post
    No, what makes it rather nasty is that dividends tax is now separate and can be easily increased at any time, it won't take long before it is aligned with income tax rates.
    I would still prefer that to some crass attempt to crowbar us all into IR35. It still allows me to choose what levels of profit to take as dividend or leave in the company for a rainy day. It still allows for > 1 shareholder.

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  • d000hg
    replied
    Originally posted by AtW View Post
    Now that's pretty fooked up.

    Working extremely long hours and having combined income from business less than high income threshold, what's the point then???
    Many people starting up their business do this at the beginning - many take no salary at all and live off savings. You never watch Dragons' Den? The hope is it's a sacrifice for a short period that will pay off.

    Didn't SKA work like that for you in the early days - coding 15 hours a day because it's your business and you can't spare the money to pay someone else?

    At the other end of the spectrum, loads of small business simply don't every generate a lot of profit. Running a nice boutique teashop or similar quirky/independent business often just about makes a living for the owner but no more. A "lifestyle business" I thin it's called.

    Leave a comment:

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