MSE News: Queen's Speech: Taxes to be frozen for five years

Pennywise

quietriot wrote: »

I'll be interested to see how they draft the bill. If they're not careful, Ltd Co directors & shareholders who previously would have had to pay higher rate tax on some of their dividends might find themselves paying nothing just by sticking themselves on minimum wage for 30 hours a week.

I would expect a competent government to legislate in such a way as to prevent that. I have no confidence that this government will be competent.

No worse than Brown's stupidity in first scrapping the old tried and testing regime for small company dividends, and then introducing a lower 10% ct rate for small limited companies and then making it even worse by bringing in a zero ct rate for the first £10k of profits. And then he wondered why lots of small sole traders such as window cleaners decided to convert to a limited company! No government (Labour nor coalition) has been able to undo the stupidity of Gordon Brown's changes to the corporation tax and dividend regime back in 1997 which was the direct cause of the beneficial tax/nic regime for small company owners/directors to this date. They either have to go back to the old regime prior to 1997 or merge tax and NIC to resolve the unintended consequences.

chrismac1

Even with all the tax savings for small companies, this is a much smaller number than the extra tax Gordon Brown's raid on dividends hit pension funds for. So I think we can safely say that rowing back on that one is not on the table.

Meanwhile, the Office of Tax Simplification made all sorts of efforts to change the tax system and did, in my view, precisely nothing. If there is going to be any major change, it must be made now, so that all the voters who lose out from the change have nearly 5 years to forget about it.

Spidernick

chrismac1 wrote: »

Office of Tax Simplification

The very definition of an oxymoron if ever there was one!

zygurat789

Spidernick wrote: »

The very definition of an oxymoron if ever there was one!

Oh I don't know, how about Microsoft works