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Sorry if this is a re-post. My brother, an accountant pointed this out to me from the last budget so thought I'd share.
"The changes will start to reduce the incentive for workers to set up companies through which to be paid, allowing them to be remunerated through dividends rather than wages in a bid to reduce tax bills, the Government said."
Expect larger tax bills.
http://www.telegraph.co.uk/finance/personalfinance...
"The changes will start to reduce the incentive for workers to set up companies through which to be paid, allowing them to be remunerated through dividends rather than wages in a bid to reduce tax bills, the Government said."
Expect larger tax bills.
http://www.telegraph.co.uk/finance/personalfinance...
Indeed. This tax rise was widely misreported on Budget day. Journalists simply reported the Government line of:
"While these rates are below the main rates of income tax, the Government said people who received significant dividend income – for example from very large shareholdings, typically of more than £140,000 if a 3.5pc yield is assumed – would pay more than they do currently."
which ignores all those contractors with their own Ltd co. Oh well, I'm sure the Government will spend the extra revenue wisely........
"While these rates are below the main rates of income tax, the Government said people who received significant dividend income – for example from very large shareholdings, typically of more than £140,000 if a 3.5pc yield is assumed – would pay more than they do currently."
which ignores all those contractors with their own Ltd co. Oh well, I'm sure the Government will spend the extra revenue wisely........
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