Tories to scrap Non-dom status? https://www.bbc.co.uk/news/uk-politics-68432487 Well overdue imho although I don't think it will release the revenues they estimate however, as the types that use this loophole will use their paid advisers to find another or simply shift more offshore. Anything that simplifies the taxation system can only help in making it fairer and more difficult to avoid/evade.
I’m just shocked how something that has been Labour policy for a while now has suddenly become something the Government is considering. When we all know Labour has no ideas.
Call me cynical but let's wait until they actually do it. This is just pre-election stuff designed to lull a few waverers into thinking they'll do the right thing. Take a look around the media and see which outlets are reporting this as if it's a commitment, rather than just some airy-fairy words that they'll quietly drop. If it's in the next budget, fair play to them.
It's a stroke of genius tbh. When they fail to implement it properly (They will) and it ends up not earning anything at best and costing taxes and jobs at worst (possible), they can blame it all on Labour. If on the offchace it has a positive effect then let the plaudits roll in. That seems to be the general strategy these days regardless of party. ****s the lot of em
Hmmm. I'm not sure it's about attracting waverers as much as trying to act the spoiler for Labour really. It's playground-level stuff as they rage against the dying of the light of their time in power. As @Moose says, we're into "you have absolutely no ideas but ner ner ner ner we've stolen one anyway" territory now. Next week's budget is going to be a masterpiece of this sort of sophistry and loaded poison pills. Tax cuts notionally funded by hypothetical spending cuts all delayed mysteriously until 2025 onwards being the main order of the day. I wouldn't put it past them to propose abolishing the non-dom thing but tie it to a really unfavourable trade off that they then tediously challenge Labour to reverse. "By abolishing non-dom status we've cut another 3p off of fuel tax. If Labour wants to spend the money elsewhere they'll be punishing the everyday motorist... blah blah blah."
Cut corporation tax and scrap tax on dividends. Fund the cuts by closing a few hospitals if you have to
Cut corporation tax - agreed. Get employers here, more jobs, more competition for jobs, better salaries. Treat dividends the same way as any other income, earned or unearned and tax accordingly. Cancel non-dom status Cancel Council Tax & TV licence, fund out of certral taxation based on ability to pay rather than what has been saved.
The one I want gone is the stupid higher child benefit tax charge. Even though I'm PAYE I have to do a SA tax return every year just to pay HMRC back a big chunk of the child benefit Mrs UEA claims. It's a ridiculously bureaucratic setup, aside from all the unfairness that comes from the ridiculous thing that a couple can early £49,999 each and not owe it but if one earns £50,100 and the other nothing they have to do a tax return and pay a bit back.
Dividends have already been subject to corporation tax. If you are a one-man band company who takes a small salary and dividends, you have already paid 19% on profits.
I'm all for making things simpler but the opportunity to pay less tax on your earnings by declaring a low salary and the rest as dividend which is taxed at a lower rate than 'earned income' is an incentive for people to start a business. As small firms are big employers we should be doing all we can to get people to start up on their own
ISTR this was the "Plumber's Scheme" that my dad was part of beforevhe retired. 'Employed' by an agency who paid him minus wage *but* he and the agency were shareholders in a company that paid him a monthly dividend...
I just don't see why someome earning the same as someone else can simply pay less tax because they can arrange their income as dividends. It's not fair. Cut corporation tax, promote business, tax people on their ability to pay, not on their inability to avoid.
No sick pay. No holiday pay. No redundancy rights. People don't pay less tax - they pay more. If you earn a net profit before salary of £50,000, and pay yourself a salary of £12,500 you pay corporation tax of £7,125 on it; if you then divi the rest (£30,275) you will pay £2,658 on the dividend. Total tax paid £9,783. If you have a 50k salary, your tax will be £7,486. What you don't pay as a business owner is NI which would be £4,500 on a £50k salary. In mitigation, if you don't keep your "stamp" topped up as a business owner, you don't get the full state pension. The main thing you save as a business owner is employER's NI, which is I think fair enough for a one-man band company. If you were a sole trader you would not pay it either.
People who think lower corporation tax = more incentive for people to start businesses but then want business owners to be taxed the same as PAYE understand neither the taxation system nor how businesses are run (especially start-ups and small-medium-sized businesses).
So far announced (of note imho) a British ISA likely a BISA. Where you get an extra £5K investible in British stocks only. Interesting idea. Non Dom tax dodge scrapped and a residency status system introduced. Will wait to see if this is just a glossy name change or not.
The expected NI tax cut of 2p. Not sure why NI is still a thing really. Should combine it with income tax.
Well, Jezza delivered. What a man! What a Chancellor! I still won't vote for the Tories in a million years but I'll be sure to toast their defeat with a bottle of something nice bought with the significant monthly saving they've just delivered.
