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Dig deep - Brown is after small businesses again

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    Dig deep - Brown is after small businesses again

    http://news.bbc.co.uk/1/hi/business/7131150.stm

    The government is proposing new laws to stop some husband-and-wife businesses cutting their tax bills by sharing their income as dividends.
    Earlier this year HM Revenue & Customs lost a test case in the Lords when it tried to challenge the tax arrangements of Geoff and Diana Jones.

    The couple's IT consultancy, trading as Artic Systems, had successfully avoided paying £50,000 in income tax.

    The government argued that the "income splitting" involved was artificial.

    "The government believes that the fairness of the income tax system is undermined if some individuals are able to dissociate themselves from income that they would have received in order that the income is taxed in the hands of another individual at a lower rate," said the Treasury.

    "The [new] legislation would apply only where a tax advantage is gained through non-commercial arrangements and where the shifted income is in the form of a company distribution or share of partnership profits," it added.


    Pay up, every penny needed to prop up a dying country.

    #2
    It's only fair.

    Rule #76: No excuses. Play like a champion.

    Comment


      #3
      One thing about the UK I have noticed....You all know how to tax.

      The royals - when they were running the joint - couldn't think up anything like the taxes you have here. I get taxed if I put money into my Son's savings account if it is above a certain level....how the hell do I keep track of that!
      McCoy: "Medical men are trained in logic."
      Spock: "Trained? Judging from you, I would have guessed it was trial and error."

      Comment


        #4
        Why do I get the feeling this is heading for another shambolic implementation of taxation rules ?

        PS. What about unmarried partners companies - will that count ?

        Comment


          #5
          Can't they just double council tax again? That way no one will notice

          Comment


            #6
            They are moving into elections in a very bad shape - it would be really stupid for them to introduce any new taxes next year. On the other hand they might be thinking that next year actually is their last chance to introduce new taxes because they would not be able to do so in 2009 just before the elections.

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              #7
              I have a feeling that the diamond on a silver platter handed to Brown in 1997 will be handed back to the Tories as a Trud on a shovel. Talk about Golden legacy, the Tories will get a "Brown" legacy, in all senses of the word

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                #8
                How will they enforce it though? Will they have as much success as they have with IR35?

                Has IR35 been a profit or loss for them? (Sorry I don't know the answer to that question but I'd be interested to know it all the same!)
                "Is someone you don't like allowed to say something you don't like? If that is the case then we have free speech."- Elon Musk

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                  #9
                  Originally posted by AtW View Post
                  They are moving into elections in a very bad shape - it would be really stupid for them to introduce any new taxes next year. On the other hand they might be thinking that next year actually is their last chance to introduce new taxes because they would not be able to do so in 2009 just before the elections.
                  Strategically the best thing for them to do would be to increase taxes on the people that aren't going to vote for them anyway.

                  Oh no, what am I suggesting.

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                    #10
                    Originally posted by Gonzo View Post
                    Strategically the best thing for them to do would be to increase taxes on the people that aren't going to vote for them anyway.
                    I don't think so - it is one thing to lose elections by small margine and another by big one - specific MPs will lose their cushy seats, so I reckon NL MPs will be very nervous indeed next year.

                    Comment

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