DOOM: Taxes

[_V_]

Tax property heavily, I sold all my BTL already.

[sadkingbilly]

I think the point of this high taxation is mostly to stop the middle classes from getting uppity.

, but it’s half the (marginal) income of the poor contractor gone.

[hugebrain]

Tax property heavily, I sold all my BTL already.

It’s the Normans with thousands of acres I’m more worried about. The amount of bennies those guys get is obscene.

[WTFH]

I'll say it again - tax dividends closer to income, tax off-shore investments/income/trusts, tax family trusts that are set up to avoid tax.

The government says it doesn't want to tax companies more as that (allegedly) reduces corporate investment. OK, then tax the profits that are paid out to shareholders.

But, what we can expect is a Barber budget, like we had in 1972, because most of the supporters have heard of the failures in 1974, but not the cause in 1972.

[AtW]

I'll say it again - tax dividends closer to income

They are if you factor in corp tax, in fact will be higher in 2023 and that is before Labour gets on

[WTFH]

They are if you factor in corp tax, in fact will be higher in 2023 and that is before Labour gets on

You're only thinking about that from the viewpoint if a small company/one man band where company income - CT = personal income.
Think of a big business, who minimises corp tax by moving funds around so they can pay out more to their shareholders.
Company investments, salaries, etc, aren't impacted, just the shareholders having to pay more tax.

Maybe the other option would be that if dividend payments are greater than salaried income, then all dividend payments are taxed at salary rate.

[AtW]

“The dividend tax rates in 2022/23 33.75% if you're a higher rate taxpayer. 39.35% if you're an additional rate taxpayer.”

Div tax rates already within 6% of income tax levels - they are already close even without taking corp tax into account which even for large companies is not zero.

The only real benefit dividends still have is lack of NICs - would not be surprised if Labour invents their own “social levy” and applies it to dividends, at that point I’d expect large UK divi payers to relocate to say Germany with flat rate 25% divi rates (nearly half of UK now)

[malvolio]

There's a big difference between national debt size and deficit, look it up. A deficit of £50bn is VERY significant, hence why the whole economy, pensions and BoE nearly went tits up. We were days away from a national default, and not out of the woods yet.

What's needed now are the biggest tax rises ever seen, something akin to a World War scenario. Hopefully the govt have the balls to set tax increases requred.

I know the difference, actually.

More to the point the "black hole" lies between the current position and the target of a projected position in 3-5 years' time. That's not quite the same thing as there being £50bn shortfall over that period. In reality what the government are aiming to do is put tax rates up under a fairly acceptable premise, but I will give good odds they will come sdown with a bang in about 18 months' time...

[hugebrain]

I'll say it again - tax dividends closer to income,

I’m all for that, but cutting the dividend tax (24% corporation tax + 33.75% dividend tax) down to the 40% income tax rate would mean that the gimmigrants might have to move down to 3 star hotels or something.The MPs would never countenance that.

[WTFH]

I’m all for that, but cutting the dividend tax (24% corporation tax + 33.75% dividend tax) down to the 40% income tax rate would mean that the gimmigrants might have to move down to 3 star hotels or something.The MPs would never countenance that.

And again, you are a one man band, not a proper company. You seem to think that corporation tax is personal. It's not.