Reply to: Petition to get the gov to reconsider the dividend tax changes

[AtW]

I can't see CT going up to anything like that extent but I could certainly imagine the £100k+ personal tax bracket raising to 60-70%, and the current upper tax bracket to 50% (maybe above 50k as you say)

£100-120k is already 60% level

Next step will certainly be increase in dividend tax to align it with income tax, because why should people getting dividends pay less than hard working folks? Of course the fact that dividends come from company that pays taxes (business rates, corp tax, employer NICs, insurances etc) will escape most people

[DimPrawn]

Breaking news!

Osborne has just read the petition.

[Zero Liability]

The response email this morning infuriated me, I could have accepted a reasonable email, but they are deliberately saying that they are targeting self employed and small businesses, they want them to pay same tax as employees, but they are forgetting that we do not have same benefits as employees?

They do think most of us are working through a ltd for one reason only which is pay less tax, which is not true, firstly most if not all companies/agencies will only accept incorporated contractors, secondly some of us like the life style of a contractor, I like the consulting model, I go there for a contract when its done, I am free to take a few months off if I feel like it, or I can run services for two clients at the same time etc...

This would affect anyone drawing dividends above the relevant thresholds. They're being a little misleading when stating the primary motivation is to limit alleged TIC; it's basically a new revenue source.

Whilst I am not at all in agreement with yet another tax, at least if they had stopped here insofar as contractors are concerned and limited any other changes exclusively to the low paid and Fri-mon scenarios, I could live with it. Yet it still isn't enough for them.

[d000hg]

Unserstatement of the decade.

I would guess "rich" would be defined as "above twice the average UK earnings" (so about £50K) and personal and business tax rates in the 60 to 70% range.

If you want to take home about 20 to 30% of your hard earned, and then pay another 20% on VAT when you spend it on a potato, be my guest.

I can't see CT going up to anything like that extent but I could certainly imagine the £100k+ personal tax bracket raising to 60-70%, and the current upper tax bracket to 50% (maybe above 50k as you say)

[vetran]

Sell your company and take entrepreneurs relief before blowing it all on Kebabs & loose Squirrels!

FTFY

[fullyautomatix]

The response email this morning infuriated me, I could have accepted a reasonable email, but they are deliberately saying that they are targeting self employed and small businesses, they want them to pay same tax as employees, but they are forgetting that we do not have same benefits as employees?

They do think most of us are working through a ltd for one reason only which is pay less tax, which is not true, firstly most if not all companies/agencies will only accept incorporated contractors, secondly some of us like the life style of a contractor, I like the consulting model, I go there for a contract when its done, I am free to take a few months off if I feel like it, or I can run services for two clients at the same time etc...

Go permie then!

Next!

[DimPrawn]

Well basically the same but CT and income tax will go up a lot.

Unserstatement of the decade.

I would guess "rich" would be defined as "above twice the average UK earnings" (so about £50K) and personal and business tax rates in the 60 to 70% range.

If you want to take home about 20 to 30% of your hard earned, and then pay another 20% on VAT when you spend it on a potato, be my guest.

[d000hg]

How much worse can it possibly be under Korbyn?

Well basically the same but CT and income tax will go up a lot.

[SandyD]

The response email this morning infuriated me, I could have accepted a reasonable email, but they are deliberately saying that they are targeting self employed and small businesses, they want them to pay same tax as employees, but they are forgetting that we do not have same benefits as employees?

They do think most of us are working through a ltd for one reason only which is pay less tax, which is not true, firstly most if not all companies/agencies will only accept incorporated contractors, secondly some of us like the life style of a contractor, I like the consulting model, I go there for a contract when its done, I am free to take a few months off if I feel like it, or I can run services for two clients at the same time etc...

[SueEllen]

What's really insulting is that this sort of behavior is expected from Labour, but supposedly Conservative Chancellor outdone them, all hoping that the working man will vote for him in 2020.

Liebour under Milliband had no policy for small businesses this allowed whoever got into power to do what they wanted as it wouldn't be opposed.

[Zero Liability]

What's really insulting is that this sort of behavior is expected from Labour, but supposedly Conservative Chancellor outdone them, all hoping that the working man will vote for him in 2020.

Yup, and in a subtle way where he actually gave away next to nothing.

[mudskipper]

Well they were unlikely to say, "Oh gosh, we thought you'd like the tax - of course we'll revoke it immediately."

If they want to discourage TMI, then I'd prefer them to reduce Employer's NI rather than corp Tax - but as you pointed out, big businesses don't pay corp tax.

[AtW]

"All direct taxes were abolished in 1974; the DPRK thus became the first country in the world to abolish income taxes collected from its citizens."

"All foreign-invested enterprises are subject to income, property, turnover, and local taxes. In the four special economic zones established by the government, one in 1991 and three in 2002, the tax on profits for most enterprises is set at 14%; for enterprises involving high technology, infrastructure construction, or light industry, the tax rate is 10%. Resident aliens in the DPRK must pay personal income taxes; the rate varies from 4% to a top rate of 20%. "

Taxation - Korea, Democratic People's Republic of (DPRK) - infrastructure

Top rate of 20%!!!

So the philosophical question is this - at what point taxation in this country would make life indistinguishable from DPRK?

[MarillionFan]

What's really insulting is that this sort of behavior is expected from Labour, but supposedly Conservative Chancellor outdone them, all hoping that the working man will vote for him in 2020.

A perfect storm.

Pensions
Dividends
BTL
T&E

The only thing for the clever business man is to now use their pension to buy their own premises and overpay rent into their own SIPP which in turn reduces their profits and in a few years can take it all out tax free.

Just saying like ;-)

[MarillionFan]

Can't afford it mate, I have to work now twice as hard to afford this sort of taxation

Sell your company and take entrepeneurs relief before blowing it all on business class flights and champagne!