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Previously on "Will the dividend tax hike take the heat off IR35?"
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Originally posted by garnet View PostIf there is a divi tax hike, one can always open an LTD in Bulgaria. 1 euro capital needed.
It is not a tax heaven per se, but it has a 10% slab tax on personal income, 10% corp tax, 5% divi tax.
In theory one can have an effective tax of 12.5-13% on all profits of a company.
It is certainly a possibility if divi here gets taxed more.
Clearly, you're not familiar with the Controlled Foreign Company rules (and associated charge). Most jurisdictions have something analogous. Plus, any UK-resident director pays tax in the UK on their worldwide income. Imagine that.
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Originally posted by garnet View PostYou don't need to do that at all.
Your UK LTD buys services from your Bul LTD. Bul LTD pays taxes in Bul.
Hmmmmm. Now I am not a tax inspector but I suspect that scheme would be construed as tax evasion and carry a jail sentence.
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Originally posted by garnet View PostYou don't need to do that at all.
Your UK LTD buys services from your Bul LTD. Bul LTD pays taxes in Bul.
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Originally posted by garnet View PostIf there is a divi tax hike, one can always open an LTD in Bulgaria.
It is not a tax heaven per se, but it has a 10% slab tax on personal income, 10% corp tax, 5% divi tax.
In theory one can have an effective tax of 12.5-13% on all profits of a company.
It is certainly a possibility if divi here gets taxed more.
Leave a comment:
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If there is a divi tax hike, one can always open an LTD in Bulgaria. 1 euro capital needed.
It is not a tax heaven per se, but it has a 10% slab tax on personal income, 10% corp tax, 5% divi tax.
In theory one can have an effective tax of 12.5-13% on all profits of a company.
It is certainly a possibility if divi here gets taxed more.Last edited by garnet; 14 April 2016, 10:51.
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Originally posted by m0n1k3r View PostMy point is that at £43k pa the difference between dividends and PAYE is not very large, and as you earn more than that the difference shrinks further. If you were to become required to draw a salary from your limited company instead of drawing dividends, it actually won't make that much of a difference.
While I get the point that we don't get the benefits that a permie does (sick pay, holidays, redundancy, training, etc.) I'd counter that by saying that too many permies have gone contracting (arguably at the bequest of companies looking to avoid NICs) and many contractors shouldn't be contractors.
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Originally posted by LondonManc View PostWhat's your point?
Mine is that I'd rather be taxed on £100-120k pa equivalent than £50-60k pa
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Originally posted by m0n1k3r View PostAt the basic rate level, with corporation tax, employer's NI etc taken into account but pensions contributions excluded, the gain with taking small salary + dividends is 8.3% compared to PAYE.
Mine is that I'd rather be taxed on £100-120k pa equivalent than £50-60k pa
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Originally posted by AtW View PostThey can't do it really - if you look carefully at budget stuff you'll see that GDP growth relies in more people coming into the country, young people who'll be paying into ponzi schemes of National Insurance, Residential Property etc...
DOOMED!
All well and good having growth but wages are a good few years behind to keep growth going , even so called well off individuals are finding it hard, a good wage does not equal a good life anymore.
I have respect for people trying to analyse all the financial BS that is given to us to mull over , but as you mentioned all we have now is property owners and non property owners, and when i say owners i mean people with proper equity or owned outright.
i am more worried about how far these kunts will go to keep the ponzi bollocks going. start nicking depositors cash ??? , It will fail spectacularly eventually though the pyramid scam only works with new entrants at the bottom .
could gold rise to the stars
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Originally posted by unemployed View Postwhat happens when they decide they only want faces that fit. grease the pole some more for the wannabees ?
DOOMED!
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