Budget Day

[Ketto]

Yep, and it's also unfair on younger people who will miss out on the opportunity to build pensions as good as the generations above. It would have been simpler to reduce the £60k annual allowance.

The £2k limit is insane. I just love it when governments offer incentives to behave in a certain way and then have a major crack down to stop the behaviour they have been encouraging.

[FIERCE TANK BATTLE]

2% rise in dividend tax
2% rise in tax on rental income

"fully funded and fully costed - no ifs, no ands, no buts… no additional tax rises."
“Nothing in our plans requires any additional tax to be increased.”

- Rachel Reeves

[northernladuk]

2% rise in dividend tax
2% rise in tax on rental income

"fully funded and fully costed - no ifs, no ands, no buts… no additional tax rises."
“Nothing in our plans requires any additional tax to be increased.”

- Rachel Reeves

Got to pay for all those people illegally claiming benefits don't they.

[Protagoras]

2% rise in dividend tax
2% rise in tax on rental income

And 2% on savings income ...

So for those of us in Jockland on higher rate, that will be a marginal tax rate of 44% on income.

[ittony]

Er, how would that work? I suppose you have the tax advantage of not having dividend tax, but eventually you will have the tax disadvantage of having dividend tax or capital gains tax, which is higher (currently, and even more so in April 2026). In any case, SalSac isn't relevant to a company director who will receive employer contributions, which are unaffected (except in the edge case where a company has all contract income inside IR35, but that is exceptionally rare for, among other reasons, SalSac being available through an umbrella).

Are you deliberately playing dim?

The choice for a one man limited company is between paying corporation tax plus dividend tax now, or paying tax free into a pension which might expect income tax on withdrawal at a lower rate later. The question is whether the latter will be possible under the new regime.

[jamesbrown]

Are you deliberately playing dim?

The choice for a one man limited company is between paying corporation tax plus dividend tax now, or paying tax free into a pension which might expect income tax on withdrawal at a lower rate later. The question is whether the latter will be possible under the new regime.

Hat tip to your superior dimwittedness. As discussed above and noted in the budget speech itself, these changes don’t affect traditional employer pension contributions, they only affect SalSac, which is irrelevant for a company director receiving dividends from outside IR35 income. Also, the choice you propose is a false dichotomy.

[FIERCE TANK BATTLE]

Got to pay for all those people illegally claiming benefits don't they.

The problem is more that they're *legally* claiming, cos Labour seems to have made anyone and everyone eligible for as much cash and money as they can find.

We did have a problem with migration, and most migrants have 3+ children, well not to fret they now get even moooooore money. Moooore benefits in the form of minimum wage and working protections, mooore benefits for all, financed by people who are definitely not leaving in droves.

[sadkingbilly]

The problem is more that they're *legally* claiming, cos Labour seems to have made anyone and everyone eligible for as much cash and money as they can find.

> Labour did all that in 15months? - wow!!

We did have a problem with migration, and most migrants have 3+ children, well not to fret they now get even moooooore money. Moooore benefits in the form of minimum wage and working protections, mooore benefits for all, financed by people who are definitely not leaving in droves.

oh, really?? - you are Tommy Twonames and i claim my £20.

[xoggoth]

According to the DT (subscription so no quote) some working families with three or more children will be £18k worse off than benefit claimants after Budget. We have to do something to reduce the welfare bill or nobody will be incentivised to work at all.

[GitMaster69]

In totally unrelated topic, anyone tried contracting (and subcontracting) from abroad to UK clients?