Income splitting looked at again

[xoggoth]

Has anyone mentioned this item? Not seen it.

Government to revive 'Dracula' tax on family businesses - Telegraph

However, the world will end in 2012 so we don't need to worry about it.

French village which will 'survive 2012 Armageddon' plagued by visitors - Telegraph

[Jog On]

Has anyone mentioned this item? Not seen it.

Government to revive 'Dracula' tax on family businesses - Telegraph

However, the world will end in 2012 so we don't need to worry about it.

French village which will 'survive 2012 Armageddon' plagued by visitors - Telegraph

This has been doing the rounds today in the accounting section:

http://forums.contractoruk.com/busin...ck-agenda.html

Not sure about the armageddon stuff though

[doodab]

If I & my wife both have jobs and the income is paid into our joint account, we are taxed individually.

If I & my wife both have jobs at the same company and the income is paid into our joint account, we are taxed individually.

If I & my wife both have jobs at the same company and both have shares in the company we work for and the income is paid into our joint account, we are taxed individually. (I know people like this working for global multinationals with employee share schemes)

If I & my wife both have jobs at the same company & and both have shares in the company we work for and we happen to be the only shareholders and the income is paid into our joint account, we aren't taxed individually.

What utter bulltulip. Good job I don't have a wife.

[scooterscot]

What utter bulltulip. Good job I don't have a wife.

Clearly you don't understand the difference between running a business and working for a business.

[Zippy]

What utter bulltulip. Good job I don't have a wife.

Can't afford one?

[doodab]

Clearly you don't understand the difference between running a business and working for a business.

If I have a job running a business for somebody else and my wife has a job running a business for somebody else and we both have shares in those businesses and the income is paid into a joint account we are taxed individually. Even if it's the same business.

If we are shareholders in the same business and we both receive dividends we are taxed individually.

If I and a friend run a business together and we both receive income and dividends from it we are taxed individually.

The only situation where expecting to be taxed individually is seen as "avoidance" seems to be when spouses both own and run the business.

What utter bulltulip.

[doodab]

Can't afford one?

I suggested we get married to keep the tax bill down but she wasn't impressed

[Churchill]

I suggested we get married to keep the tax bill down but she wasn't impressed

You old romantic, you.


On a serious note, I agree entirely with your sentiments regarding the joint taxation.

[xoggoth]

Unfortunately I never had the opportunity as the missus was always around the upper income tax level. If you are a Mormon or a Muslim can you split it between multiple wives? That would be good.

[scooterscot]

If I have a job running a business for somebody else and my wife has a job running a business for somebody else and we both have shares in those businesses and the income is paid into a joint account we are taxed individually. Even if it's the same business.

If we are shareholders in the same business and we both receive dividends we are taxed individually.

If I and a friend run a business together and we both receive income and dividends from it we are taxed individually.

The only situation where expecting to be taxed individually is seen as "avoidance" seems to be when spouses both own and run the business.

What utter bulltulip.

Nope you still don't understand.

In the scenarios above you continue to take zero risk developing the business. What do you care if it fails? You'll just move on to the next thing like fred the shred. This attitude to business helps explain by far the mess the countries corporations are in, all about short term gains without a thought for the long term prosperity.

I've contributed more to the exchequer that at any time of my life with my current way of working. To force this through would be the final nail on entrepreneurship, which would see me return to some permiedoom job contributing less.

What utter bulltulip indeed.