Labour to raise dividend tax from 7.5% to 20% Labour to raise dividend tax from 7.5% to 20%
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  1. #1

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    boxingbantz's Avatar
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    Thumbs down Labour to raise dividend tax from 7.5% to 20%

    Corporation tax to rise to 26%.

    Good luck with that...
    Last edited by boxingbantz; 22nd November 2019 at 20:28.

  2. #2

    Fingers like lightning


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    Not looking good for the 'low wage + divies' Ltd model under Corbyn.

    "Dividends are currently taxed at a lower rate than income. But in a move that will hit entrepreneurs and the self-employed who pay themselves through dividends, as well as savers with money in the stock market, Labour plans to align dividend tax and income tax."

    Corbyn Divies:
    Tax brackets abolished.
    Dividend income and capital gains income treated as 'normal income' for tax purposes.
    £50,000–£79,999 40%
    £80,000–£124,999 45%
    £125,000+ 50%
    Last edited by SunnyInHades; 24th November 2019 at 00:03.

  3. #3

    Nice But Dim

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    Quote Originally Posted by SunnyInHades View Post
    Not looking good for the 'low wage + divies' Ltd model under Corbyn.

    "Dividends are currently taxed at a lower rate than income. But in a move that will hit entrepreneurs and the self-employed who pay themselves through dividends, as well as savers with money in the stock market, Labour plans to align dividend tax and income tax."

    Corbyn Divies:
    Tax brackets abolished.
    Dividend income and capital gains income treated as 'normal income' for tax purposes.
    £50,000–£79,999 40%
    £80,000–£124,999 45%
    £125,000+ 50%
    If the IR35 reforms bite then you are looking at full PAYE on all income with Employers NI thrown in on top as well, so really not much difference.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  4. #4

    I Am Legend


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    Quote Originally Posted by DaveB View Post
    When the IR35 reforms bite then you are looking at full PAYE on all income with Employers NI thrown in on top as well, so really not much difference.
    FTFY

  5. #5

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    Quote Originally Posted by boxingbantz View Post
    Corporation tax to rise to 26%.

    Good luck with that...
    Well done you for a turnover of over £300,000.

    The proposed rate for business with a turnover under that is 21%, not 26%.

  6. #6

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    Quote Originally Posted by meridian View Post
    Well done you for a turnover of over £300,000.

    The proposed rate for business with a turnover under that is 21%, not 26%.
    I'll breach that figure this year, because I was foolish enough to hire a couple more people whose time I could bill out. If this were to come in I might just let them go, and tell them I'll be glad to recommend them to clients but I can't afford to keep them on as employees.

    Yet another Labour stupidity -- if they based it on a profit threshold rather than a turnover threshold then it wouldn't be a disincentive to employ people. These people aren't even competent in implementing envy politics.

    If this policy comes in I'll just downscale after my next big project is done. No more new employees or subcontractors -- have to keep my turnover below that threshold. Incredible to think that accidentally getting an extra £100 of turnover, which might go to employee salaries or whatever, can cost your company an extra 5% in tax. How incredibly stupid these people are.

  7. #7

    Contractor Among Contractors


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    Fortunately for us, there is zero chance of overall Labour majority, so even if they form the next government, there will be checks on their outlandish policies.

  8. #8

    Contractor Among Contractors

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    Gotta say I think the Lib Dems have the edge on the big 2 here

  9. #9

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    Quote Originally Posted by PerfectStorm View Post
    Gotta say I think the Lib Dems have the edge on the big 2 here
    Unfortunately for us, Jo blew her load with the promise to outright revoke A50, this blew back in their faces big time. There are a lot of "moderate" remainers that would have been happy with a promise of 2nd referendum and LibDems campaigning for Remain, but are appalled by outright revoking A50 solely based on GE.

    This was stupid an immature decision on their part.

  10. #10

    Should post faster


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    Quote Originally Posted by sal View Post
    Unfortunately for us, Jo blew her load with the promise to outright revoke A50, this blew back in their faces big time. There are a lot of "moderate" remainers that would have been happy with a promise of 2nd referendum and LibDems campaigning for Remain, but are appalled by outright revoking A50 solely based on GE.

    This was stupid an immature decision on their part.
    What is so appalling about revoking article 50? I hear people complaining about it being undemocratic, but the Lib Dems can only do the revoking if they win the votes, which seems to me to be the very essence of democracy. Looking at the European election results, half the voters want it.

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