NI Corporation Tax 12.5%

x12yhp

In effect, I'll be able to spend 15k more and still get the same amount out. Sure you said you'll have an extra 30k based on your 400k - why can't you employ someone with that? You can't have got to earning that much without thinking this way (unless someone else set it up for you).

saverbuyer

x12yhp wrote: »

In effect, I'll be able to spend 15k more and still get the same amount out. Sure you said you'll have an extra 30k based on your 400k - why can't you employ someone with that? You can't have got to earning that much without thinking this way (unless someone else set it up for you).

So you'll be able to spend the 15k you save by employing "additional people"?

It was just a rough example. 90% of the existing NI PAYE and VAT tax take comes from micro business like yours. I'm imagine most of the savings will be much lower than 15k. Not IMO enough to employ an additional person.

With my 40k example, and already having 300k, is it worth the hassle to take on an extra person? Or will the directors just split it as a dividend? I'm betting, from experience, it'll get taken but we'll see.

The man beneficiaries of this will be the Paul's of NI. The limited company one man bands. The money will go right in their pockets. So do the PAYE tax payers here feel it's ok to subsidise mine and Paul's holiday fund?

qwert_yuiop

If it ever happens, and it works the same way as it does down south, we'll find numerous hurdles designed to stop the above. Most of the one man bands working as limited companies there are paying 20% tax, and sole trader status is the preferred option of most small businesses.

JoseChungsDoomsday

To be honest, losing £450 million a year from the block grant is too much of a risk to take.

We will lose the £450 million from day one but could take up to 5 years for companies to really move in and create more temporary jobs. Worries about your hospitals and schools? You should be because they will be the ones losing the money.

tara747

JoseChungsDoomsday wrote: »

To be honest, losing £450 million a year from the block grant is too much of a risk to take.

We will lose the £450 million from day one but could take up to 5 years for companies to really move in and create more temporary jobs. Worries about your hospitals and schools? You should be because they will be the ones losing the money.

This is exactly my concern... :eek:

Mistral001

JoseChungsDoomsday wrote: »

To be honest, losing £450 million a year from the block grant is too much of a risk to take.

We will lose the £450 million from day one but could take up to 5 years for companies to really move in and create more temporary jobs. Worries about your hospitals and schools? You should be because they will be the ones losing the money.

There needs to be more long-term jobs rather than temporary jobs. Short-termism seems to govern most economic thinking it would seem these days. I think the biggest risk of reducing the Corporation Tax is that it might only attract firms who want a short-tern fix for their balance sheets, but not really interested in investing real money here forthe long term..