Petition to get the gov to reconsider the dividend tax changes

[DimPrawn]

I say it's missold insurance product, time to make class action lawsuit against Govt to return with interest all Employer National INSURANCE contributions since that "insurance" never paid out anything.

I think it insured the credit derivative swaps so we didn't have a credit crunch.....

[d000hg]

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.

AS I said, you are nothing like a contractor any more so claiming that your business model is the same as other contractors is daft. You ARE a 'proper' business, even if you didn't start out as one.

It's obvious that the dividends rate will tend to reach income tax levels.

Lots of things are obvious to a fool.

[Ticktock]

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?

So, in other words, nothing at all to do with either dividend tax changes, T&S changes, IR35 changes, or anything else new being proposed, nothing at all to do with this thread and nothing at all to do with the discussions being had?

[tomtomagain]

So, in other words, nothing at all to do with either dividend tax changes, T&S changes, IR35 changes, or anything else new being proposed, nothing at all to do with this thread and nothing at all to do with the discussions being had?

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?

[The Spartan]

We're nothing but easy targets, screw small businesses while pandering to the multinationals it's quite sickening

[BrilloPad]

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

The only way you will ever get any sort of justice or change is to dress up in stupid costumes that will appeal to the base levels of the press.

Petitions get nowhere and achieve nothing. Apart from giving yourself stress.

[d000hg]

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?

Surely the Starbucks next door is a franchise company?

[pr1]

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?

so, following your logic:

"give the little guy a tax break so he at least has a chance to become the big guy and really get his teeth into full blown tax evasion"

starbucks started as the little guy, too

[tomtomagain]

so, following your logic:

"give the little guy a tax break so he at least has a chance to become the big guy and really get his teeth into full blown tax evasion"

starbucks started as the little guy, too

If that's how you read my post, then that's up to you. My advice to you is to keep being a permie and don't bother trying to become an entrepreneur. The mindset required is obviously beyond you.

[The Spartan]

so, following your logic:

"give the little guy a tax break so he at least has a chance to become the big guy and really get his teeth into full blown tax evasion"

starbucks started as the little guy, too

Not necessarily large companies like John Lewis and Costa Coffee pay the correct amount of corporation tax