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For those on here that own business and pay Salary and Divs what are you doing about the tax changes that come in next month?
Cash in hand mate.
as always there will be a loophole around it, clever accountants can easily oustmart those at the IR.
what are they changes?
I assume it's IR35 related?
move to the Isle of Man, we've not got IR35, however it may not fool my colleagues in HMRC. Top rate of tax 20% in April, nice allowances, plus mortgage/loan relief. And its got lots of nice hills and trails too!
..and you can marry your sister.
As the owner of a Ltd company, guess we just got to get on with it, only thing Im not happy about is paying the VAT online, but we are working on that one.
You're bothered about having to pay VAT online, but not the extra 32.5% on dividends?
Chatting to the accountant for a few quid not worth the
worry.
Actually, reading the 2009 budget, it's not entirely clear if it applies to just people earning over £150k:
There will be a top rate of income tax for 2010/11 of 50% (42.5% on dividends) for individuals with incomes of more than £150,000. The rate applicable to trusts will also rise to 50% (42.5% on dividends) from 6 April 2010.
If you're talking abt the 50% rate a bit of tax planning should make it almost irrelevant. Remember personal Allowances also reduce on a sliding scale between £100 and £150k. Use of pension, spouse divs, deferral of income are all options.