FabSwingers.com > Forums > Politics > Hidden large tax rise for 920,000 working people
Hidden large tax rise for 920,000 working people
Jump to: Newest in thread
There are 920,000 one man limited companies in the UK.
Many, if not the majority, of them are trades people or other people who sell their labour/ skills.
The chancellor, in her budget, was being very economical with the truth when she said the increase in the employment allowance from £5,000.00 to £10,500.00 would protect small businesses from the increases in National Insurance. One man companies are not entitled to the employment allowance.
Someone on the minimum wage will have to pay over £800.00 more a year in tax!! |
Reply privately, Reply in forum +quote
or View forums list | |
There is no tax advantage to Ltd anymore. In fact it is better to be a sole trader.
Most use the Ltd route now to protect their own property and savings if the worst should happen. I.E. put them into the same position as a regular employee
|
Reply privately, Reply in forum +quote
or View forums list | |
"There is no tax advantage to Ltd anymore. In fact it is better to be a sole trader.
Most use the Ltd route now to protect their own property and savings if the worst should happen. I.E. put them into the same position as a regular employee
"
For me it will be just put the price up and passs it on to customers so won't make a difference.
If your getting work done on your own property except the cost to go up again. Materials are also going up because of the change in NI.
So the working person will indirectly cover the cost of the change one way or another. |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share."
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No  |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No "
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business. |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business."
exactly .... if people are going to cheat the system, the system will be altered accordingly to make sure they pay their fair share. it's what PAYE people voted for  |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business.
exactly .... if people are going to cheat the system, the system will be altered accordingly to make sure they pay their fair share. it's what PAYE people voted for "
As I said I've always paid more tax as a self employed/limited company...even before recent changes. Paye was simpler, less stress and far more benefits as well. |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business.
exactly .... if people are going to cheat the system, the system will be altered accordingly to make sure they pay their fair share. it's what PAYE people voted for
As I said I've always paid more tax as a self employed/limited company...even before recent changes. Paye was simpler, less stress and far more benefits as well."
exactly .... so there's no problem then, it's just some like to moan for the sake of it rather than just paying their fair share |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business."
So as why take a salary just take dividends from the profit to reduce the tax you pay and pay what you can direct in to a private pension so tax free.
Guess it depends on you turn over but if it's less then 50k it's all OK |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business.
exactly .... if people are going to cheat the system, the system will be altered accordingly to make sure they pay their fair share. it's what PAYE people voted for
As I said I've always paid more tax as a self employed/limited company...even before recent changes. Paye was simpler, less stress and far more benefits as well.
exactly .... so there's no problem then, it's just some like to moan for the sake of it rather than just paying their fair share "
Yes many think that self employed people all cheat the system which they definitely don't either through being ethical or because of the consequences of being caught. |
Reply privately, Reply in forum +quote
or View forums list | |
"just stop moaning and start paying your fair share
As has already been said several times, there is no advantage to being a limited company nowadays. They do pay their fair share.
I don't know with Corporation Tax at 19% and dividend tax at 8.75%, its still less then income tax and NI especially with the increased NI No
...plus of course income tax which needs to be paid on salaries as you can't just get paid in dividends. As initially a sole trader and then limited company I've never paid as much tax as I do now and it's becoming more likely that I'll close the business.
exactly .... if people are going to cheat the system, the system will be altered accordingly to make sure they pay their fair share. it's what PAYE people voted for
As I said I've always paid more tax as a self employed/limited company...even before recent changes. Paye was simpler, less stress and far more benefits as well.
exactly .... so there's no problem then, it's just some like to moan for the sake of it rather than just paying their fair share
Yes many think that self employed people all cheat the system which they definitely don't either through being ethical or because of the consequences of being caught."
yes, that's the fantastic thing about IR35 |
Reply privately, Reply in forum +quote
or View forums list | |
You need to say yourself a salary to get state pension contributions.
You can only put an amount into your own pension that is up to 100% of your salary- not your income.
If you are employed you will pay an effective tax rate of 28% ( income tax and ni)
If you draw dividends to pay 27.75% (19% corporation tax and 8.75% dividend tax). For most people that is a saving of less than £1.00 a week. And in return?
You loose access to almost all state benefits.
Where is the encouragement to set up a business which tan grow, employ people and pay tax on genuine profit? |
Reply privately, Reply in forum +quote
or View forums list | |
» Add a new message to this topic
