Reply to: 7.5% divvy tax where is it going

[AtW]

This, possibly: New MPs to be handed 10 per cent pay rise worth £7,000 within months - Telegraph

Its a shame that MPs aren't public sector workers then they wouldn't be a 1% pay cap

They don't even qualify as workers...

[darmstadt]

This, possibly: New MPs to be handed 10 per cent pay rise worth £7,000 within months - Telegraph

Its a shame that MPs aren't public sector workers then they wouldn't be a 1% pay cap

[Waldorf]

7.5% divvy tax where is it going

45% rate will be gone, all right, to become 50% after Liebor landslide in 2020, whose first emergency budget will also return corp tax back to 25%.

Ha ha, world of dreams or nightmare depending on your view. Nightmare in my case.

[Waldorf]

Ok, but why is it 30.6%?

Answer that!

The top rate of tax on dividends is currently 37.5% on the GROSS dividend. Take off the 10% tax credit reduces this to 27.5%.

To get the rate on the NET dividend, divide 27.5% by 0.9 and this gives you 30.555% rounded up to 30.1%

Eg

£45,000 net dividend paid in cash = £50,000 gross

Tax due 27.5% x £50,000 = £13,750

13,750 / 45,000 = 30.55%

[AtW]

It would now be tempting by this or a future chancellor to increase this rate so that it may come in the future that dividends are taxed at the normal rates, ie 20% & 40% - I am assuming that the 45% rate will have gone by then.

45% rate will be gone, all right, to become 50% after Liebor landslide in 2020, whose first emergency budget will also return corp tax back to 25%.

[AtW]

On income in excess of £150,000 the extra tax on dividends is currently 30.6%, so by adding 7.5% across the board results in 38.1%

Ok, but why is it 30.6%?

Answer that!

[darmstadt]

I think he would prefer some plants to talk to. At least they don't answer back so can't point out what a moron he is.

I mean - Camilla or Diana. Which would you choose?

Well Diana is probably smellier and more wrinkled now

[Waldorf]

More interesting, given that there are 40% and 45% tax bands, then why the fook divvy taxes are 32.5% and 38.1% - WTF the difference isn't 5%???

Given that corp tax is paid, overall taxation level would be nicely close to 50% - something that is expected from Nu Liebor, but certainly did not expect it from Tories who dropped income tax rates to 45% from 50%.

The tax credit system effectively gave an 'allowance' for the corporation tax paid by the company.

This has been broken by this new tax, although it is justified by the reduction in the rates of CT, although the major reductions have been in the rates for large companies rather than small ones.

It would now be tempting by this or a future chancellor to increase this rate so that it may come in the future that dividends are taxed at the normal rates, ie 20% & 40% - I am assuming that the 45% rate will have gone by then.

[BrilloPad]

I'm sure Charles will want solar panels on the roof of Buckingham palace and some windmills in the garden when he moves in

I think he would prefer some plants to talk to. At least they don't answer back so can't point out what a moron he is.

I mean - Camilla or Diana. Which would you choose?

[Waldorf]

I'm interested in how they arrived by the .1% on the end - Conservative Xmas party?

On income in excess of £150,000 the extra tax on dividends is currently 30.6%, so by adding 7.5% across the board results in 38.1%

[BlasterBates]

Don't want to get in the way of the indigination but actually what the article is on about is compensation from Heathrow airport, which is actually a private company.

...OK you can get back to being indignant again.

[Eirikur]

I'm sure Charles will want solar panels on the roof of Buckingham palace and some windmills in the garden when he moves in

[mudskipper]

She should apply for a Green Deal finance plan.

[AtW]

Double glazing is for peasants like MF.

Her Majesty deserves at least triple glazing!

[minestrone]

I think this was a story first presented in the Sunday Times today, the completely preposterous idea that the UNESCO world heritage building Windsor Castle will be eligible for double glazing.

Stand down zoomers, stand down.