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High Earners 'Will Dodge New 50p Tax Rate'

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    High Earners 'Will Dodge New 50p Tax Rate'

    http://news.sky.com/skynews/Home/Bus...2C_Experts_Say

    Tony Bernstein, senior tax partner at HW Fisher chartered accountants, said: "It will simply encourage many of the wealthier self-employed to incorporate, namely move to a limited company structure, in order to save on tax and warehouse their profits.

    B*stards!
    Guy Fawkes - "The last man to enter Parliament with honourable intentions."

    #2
    Look at it this way - The more people become self-employed, especially big earners, the less chance there is of any given person being singled out for an IR35 investigation.
    Work in the public sector? Read the IR35 FAQ here

    Comment


      #3
      Yes, and the more determined they will be to make sure you're IR3 caught. It's the old law of unintended consequences at work again. It brings the day of NI on dividends one step closer too. That will be after the election though.
      Public Service Posting by the BBC - Bloggs Bulls**t Corp.
      Officially CUK certified - Thick as f**k.

      Comment


        #4
        Well Duh, talk about stateing the obvious.

        Bulk of people earning that amount outside the banking sector probably already have their own companys, so they will get more creative how they pull their money out (and they can afford the £300 per hour accountants to tell them how)

        Those who do not have that that kind of control will be talking to their employers to come up with creative ways to to get paid and as these will be valuable employe's to those companys (otherwise why paying them so much) employeers will be happy to help (this will be rampant in bank sector)

        Many who have the option will just say sod it and move out of the country

        Hell even many who were paying the full 45% without blinking before will now be considering one of those options due to the milestone of Half of everything they earn being reached, so i would not be to susprised if total tax revenue from top earners goes down instead of up

        Whole thing is about as idiotic as the VAT cut

        Comment


          #5
          Whole thing is about as idiotic as the VAT cut
          Not really. It's a political move. If it saves their jobs, Gordo and Darling will feel it's been a great move.

          Since it probably won't be paid by anyone with any nouce, everyone wins! (except the electorate)!!
          Speaking gibberish on internet talkboards since last Michaelmas. Plus here on Twitter

          Comment


            #6
            Contractors on £650 day should seek tax advice

            First the bad news.
            For those of you planning to earn £650 day should seek tax advice.
            Now the good news.
            You will compete with 50 other applicants for every job and only earn £450 a day so you won't reach the 50p rate.
            Result increase in tax revenue zero

            Comment


              #7
              I'm not sure NI on dividend income would work. I'd more expect to see abolition of tax relief on dividend income - maybe for just close companies.
              Down with racism. Long live miscegenation!

              Comment


                #8
                Are not dividends above 150K taxed at close to 30% instead of 20%.

                So you dont save much by taking dividends, unless you Profit share with your partner (aka income shiftfing).

                The other benefits of incorporating might be to take all profits when you close your company subject to CGT. Or move to a tax haven in X years time and take divis tax free then.

                Also anyone earning over 300K will have to pay higher rate corp tax.
                which reduces the benefits quite a bit.

                Comment


                  #9
                  Originally posted by OwlHoot View Post
                  Look at it this way - The more people become self-employed, especially big earners, the less chance there is of any given person being singled out for an IR35 investigation.
                  The more people become self employed, the better for the economy as I see it. The self employed and those in small businesses contribute a massive amount of innovation, creativity and flexibility in the economy compared to the overgrown mammoth corporations. The self employed can't get government hand outs, unlike mammoth banks and car manufacturers so they are forced to get off their backsides and go out and sell their services, which must be of some use to someone otherwise they wouldn't be paid. Oh, and they keep CUK going too.
                  And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

                  Comment


                    #10
                    Originally posted by Mich the Tester View Post
                    The more people become self employed, the better for the economy as I see it. The self employed and those in small businesses contribute a massive amount of innovation, creativity and flexibility in the economy
                    But they arent really self employed, they are disguised employees init. Sheesh.
                    The Mods stole my post count!

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