Petition to get the gov to reconsider the dividend tax changes

[AtW]

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!

[d000hg]

Why could not they limit dividend tax to Personal Service Companies then?

Because that isn't something that legally exists yet?

[AtW]

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"?

[d000hg]

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

[Ticktock]

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".

[AtW]

I avoided checking the box because it went on to say something about "and operated within IR35".

I can't remember 100%, but pretty sure the box was whether the company was PSC.

For me the answer was no.

[pr1]

Absolutely this. I can't remember too much that hasn't gone our way in recent budgets. Many other groups have been hit year on year. Something was going to happen eventually. Yes it narks me but isn't going to affect my lifeatyle. The other issues however.....

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

[VectraMan]

I can't remember 100%, but pretty sure the box was whether the company was PSC.

For me the answer was no.

I did my SA the other day and it simply asked if any income was derived from a Personal Service Company. As a permie for that year then I could truthfully say no, but in the past as a contractor I might have said yes.

[d000hg]

maybe at 7.5%, what about at 10%? 12.5%? 15%? What about if the 5k free limit reduces to zero?

You could say the same about income tax or personal allowance. Rejecting something that's fair because it might end up being unfair doesn't seem that sensible. At this rate, by the time they do what you suggest we'll all be in IR35 anyway.

[pr1]

You could say the same about income tax or personal allowance. Rejecting something that's fair because it might end up being unfair doesn't seem that sensible. At this rate, by the time they do what you suggest we'll all be in IR35 anyway.

nluk's implication was that it didn't matter because it wouldn't affect his lifestyle (i.e. not based on fair/unfair)