Originally posted by OwlHoot
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Will the dividend tax hike take the heat off IR35?
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Originally posted by m0n1k3r View PostIt is the same in most of Scandinavia.
Basically UK is now heavy taxing country minus quality services which will get worse because of underinvestment - when was the last time you heard in papers about problems in Germany's equivalent of NHS???
This country now is basically like Monopoly game - whoever buys real estate gets to screw over those who could not and will not be able to get onto property ladder. As long as you don't build Hotels you are ok - because hotels will be real business which is taxed to death by Govt, just stick to vanilla property renting and count millions.
HTHComment
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Originally posted by AtW View PostCorp tax should have been harmonised long time ago to provide level playing field, OR paid based on profits derived in each EU member based on their corp tax rate just like it happens with VAT for exports now.Comment
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Originally posted by LondonManc View PostI'd still be contracting.
£500-600/day after dividend tax > £50-60k pa PAYEComment
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Originally posted by m0n1k3r View PostIt only happens like that with VAT if your customers are consumers. The intra-community VAT rules are still in effect if your customers are VAT registered businesses (most EU countries require VAT registration from the first €).Comment
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Originally posted by tomtomagain View PostBut how many Germans are directors of their own 1 man company's paying themselves in dividends?
If you insist on a company structure for limited liability, a GmbH requires €25,000 in capital to set up. There is now an 'entrepreneurial' GmbH option, whereby one can start with €1, but 25% of profits must be retained in the company until the €25,000 threshold has been met.
A GmbH is not quite a limited company either. It doesn't have shares, only a percentage ownership like an LLP. In that sense it is very similar to an American LLC. If you want a proper Ltd in Germany you have to go for an AG, which is like a plc. For that you need at least five directors and €50,000 in paid-in capital. It also requires a separate supervisor board.
If the requirements are too high, then set up a GmbH or AG in the tax havens of Austria or Switzerland instead, where they are far lower.
Most other countries within the EU require at least two directors to set up a limited company.
At the EU level there is the SE company that is the same throughout the EU so that such a company can move its place of registration from one member state to another easily. An SE is a public company and must be set up by first registering a plc or any national equivalent, and then converting it into an SE.
There has also been a proposal for an SPE company, where the 'P' stands for Private. It can be registered outright and it is modelled after UK limited companies, with no minimum capital requirements other than one share, one director etc. Like an SE, it can be moved from country to country easily. It has been blocked by Germany for a number of years because they want to capitalise on their own entrepreneurial GmbH first.Last edited by m0n1k3r; 13 April 2016, 23:24.Comment
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Originally posted by eek View PostI don't want to be drawn into any FLC discussion but Germany has sensible rules for freelance workers that the UK just doesn't have.
Remember that we have to work through an umbrella or limited company due to the law regarding agency workers dating back to the mid 1970s
Repeal that section of the tax laws, and many contractors would revert to self employment - problem solved. Instead they are going for the bazooka to kill a few fleas.Comment
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Originally posted by AtW View PostScandinavia is supposed to be high taxing countries!!!
Originally posted by AtW View PostBasically UK is now heavy taxing country minus quality services which will get worse because of underinvestmentLast edited by m0n1k3r; 13 April 2016, 23:18.Comment
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Originally posted by m0n1k3r View PostThey are. The amount of dividends that can be taxed as dividends is contingent upon what the company has paid in wages on the not too unreasonable presumption that wages should cover the basics - rent, utilities, food, etc - while dividends are for the extras.
This country should have done two things:
1) reflect corp tax paid in UK down to the pount - actual amount, not notional, pro rata allocated to all shareholders
2) any PAYE taxes (income tax, both NICs) are offsetable against corp tax, pound for pound
This will encourage companies actually not treat workforce as cost base because high taxes will be offsetable against corporation tax - suddenly outsourcing isn't such a great idea and also keeping profits in UK because any corp tax will be reflected in dividend taxation.
Simples.Last edited by AtW; 13 April 2016, 23:32.Comment
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Originally posted by AtW View Post
This country now is basically like Monopoly game - whoever buys real estate gets to screw over those who could not and will not be able to get onto property ladder. As long as you don't build Hotels you are ok - because hotels will be real business which is taxed to death by Govt, just stick to vanilla property renting and count millions.
HTHComment
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