Incoming dividend tax raid

[d000hg]

So potentially +1.25% on dividends. And reducing/scrapping the 2K allowance.

They will increase the dividend rates until they are inline with income tax rates. They are just doing it a few percent at a time.. Will take another 5 to 10 years to equalise them.

They don't seem to care we already pay 20+% corp tax beforehand.

Dividends are a way for companies to distribute profits to shareholders; contractors are an edge case which shouldn't dictate how dividends are taxed generally.
Maybe it's about time we found a better solution than having to run a Ltd to be a contractor, which is a fairly direct side-effect of the UK setup. No idea how you get that ball rolling when clients and agents seem to expect it (not to mention insurance/liability), but if income were equally taxed regardless of source we'd have no benefit from running a company. All things being equal it would be simpler.

[d000hg]

"RAID" implies a one off hit.
This isn't anything like as generous as a raid. It's simply a tax rise.

We are going to get Corbyn fiscal policy, and austerity at the same time....

This is nowhere near what Corbyn would have done. He would have done all this and jumped all personal/CT rates substantially as well, and introduced a wealth tax, and probably lots of other things.

This is a seemingly inevitable result of a hole in the finances. If your expenditure outstrips your income you have to decrease the former and/or increase the latter. Balancing a budget isn't socialist, it's not right or left it's the only option. Other than allow national debt to skyrocket which is only delaying the inevitable.

[Fraidycat]

contractors are an edge case which shouldn't dictate how dividends are taxed generally.

Not just contractors but small business owners who have a Ltd company.

There should be a difference between getting dividend income from a company you don't run/direct and company you do run and direct.

eg. Getting a dividend from say a FTSE 100 company or FTSE tracker fund is purely passive income vs the stress and risk of running your own business.

Why would anymore start a business, with all the stress and risk, knowing they will have to pay 25% corp tax followed by 40% income tax in the 5% chance they manage to make a decent enough profit. They say 95% of start ups fail...

[HoofHearted]

I'm guessing there'll be a surge of £2K dividends on the "16th" if Hunt's budget lowers the threshold...

[vetran]

This is nowhere near what Corbyn would have done. He would have done all this and jumped all personal/CT rates substantially as well, and introduced a wealth tax, and probably lots of other things.

This is a seemingly inevitable result of a hole in the finances. If your expenditure outstrips your income you have to decrease the former and/or increase the latter. Balancing a budget isn't socialist, it's not right or left it's the only option. Other than allow national debt to skyrocket which is only delaying the inevitable.

they could of course spend less.

£7 million a day for hotels etc. Think how many nurses that could train.

[Lance]

This is nowhere near what Corbyn would have done. He would have done all this and jumped all personal/CT rates substantially as well, and introduced a wealth tax, and probably lots of other things.

This is a seemingly inevitable result of a hole in the finances. If your expenditure outstrips your income you have to decrease the former and/or increase the latter. Balancing a budget isn't socialist, it's not right or left it's the only option. Other than allow national debt to skyrocket which is only delaying the inevitable.

watch this space. Hunt has his eye on £50bn a year..... and on winning the next GE. He can't get that money by increasing VAT/IT and win an election.
The Truss plan was 'to hell with the GE, we've lost it anyway. Let's have all the money and leave the sh*t for Starmer'

[Lance]

they could of course spend less.

£7 million a day for hotels etc. Think how many nurses that could train.

none. The problem with training enough nurses isn't lack of funds.
It's lack of suitable people. My wide works in higher education in health. There is no shortage of candidates, who will pay for it themselves, they're just thick/crap/lazy. And a lot are only interested in a degree course as it means they aren't married off and turned into a baby factory for a few years (they'll never actually work even if they do get qualified).

[TheDude]

I can't say I am bothered unless I ever go outside IR35 again in which case this is the greatest injustice ever.

[mattster]

This is nowhere near what Corbyn would have done. He would have done all this and jumped all personal/CT rates substantially as well, and introduced a wealth tax, and probably lots of other things.

This is a seemingly inevitable result of a hole in the finances. If your expenditure outstrips your income you have to decrease the former and/or increase the latter. Balancing a budget isn't socialist, it's not right or left it's the only option. Other than allow national debt to skyrocket which is only delaying the inevitable.

Possibly, although I do rather think "you think this is bad, it would have been even worse under Labour" is becoming a bit of a tired trope, and perhaps the last refuge of some die hard Tories (not accusing you of that, btw).
What's happening now in this country is starting to look a bit like a death spiral - we already have the highest tax take in 70 years and public services in crisis. Both are about to get significantly worse, and as a country we've been getting poorer compared to our peers for a decade or more. Where does it end? What is the plan to get out of this apart from tax rises and cost cutting? I see a significant brain drain (ex pats and Brits) coming up once the realisation of how bad things are going to be dawns which will only make things worse. We're screwed for at least another decade or more..

[jamesbrown]

I'm guessing there'll be a surge of £2K dividends on the "16th" if Hunt's budget lowers the threshold...

These changes won't be introduced until the new tax year because they need to be legislated. There are some that can be introduced on budget day, but the big ones will be deferred, as usual.