There goes the Dividends loophole ..

[Salsero]

Just listening to the Budget and distributed dividends will now be taxed at 19% .. so basically, you could wind up paying MORE than you would paying National Insurance as there's an upper limit (I believe) on employees National Insurance but (presumably) no limit on this ..

I guess the question now is: is there really any point having your own limited company any more ..?

[xoggoth]

I only opened a new one a few months ago too. Now the bastards will be getting 19% of my hard earned £56.03p profit.

[www 1staccountancy biz]

You may end up paying a little more tax but if you're caught by one of the other "schemes" that GB's going to be targetting then you the hit could be far worse. :x

Salsero.....the 19% will only affect the lower rate tax band as dividends are taxed at the higher rate in any case if you go above the threshold, still better off through the company route than a standard brolly.

What will be interesting is to see what measures GB will be undertaking to wipe out these trust/offshore schemes! :hat

[mailman]

well...

that kinda sucks really! I only got to enjoy one payday under the £10k reinvestment scheme!

Oh well...maybe I should start contracting for an Isle of Man Company eh?

Mailman

[fiddleabout]

Re: well...

> What will be interesting is to see what measures GB will be undertaking to wipe out these trust/offshore schemes!

The straight answer to that one is whatever he can - but he won't succeed - these people employ some very clever legal eagles to ensure that their revenue streams remain intact and that their clients cannot be touched.

I recently added a couple of links in the faq on www.************.co.uk to their pathetic failed attempts to knobble offshore schemes in last years budget. So far the big stick this year is that you have to enter the registration number of the scheme you are using on your self assessment return - wow that'll really have everybody quaking in their boots :rollin

[WWW ITDoctors co uk]

Re: well...

I think the UK government is far more likely to shaft contractor accountants than offshore schemes. The accountants seem to have got off incredibly lightly in todays budget. If the predicted tax on dividends had occured many people would have shifted offshore or moved to an umbrella. This is good news for contractors and their accountants alike. Lets hope new liebore don't stuff us properly when they win the next election.

The offshore scheme does away with running a limited company and pays far more of your gross fees back to you than any other method of contractor operation.

[glynuk]

Re: well...

Has anyone going thru one of these EBT schemes contacted the scheme managers? Mine are going to issue a statement next week. I'm interested to know what others are saying they are going to do...