Quote:
Originally Posted by Hugh
Limited companies pay salaries and dividends, and dividends are taxed at 28%, IIRC.
---------- Post added at 12:07 ---------- Previous post was at 12:05 ----------
They won't.
The 2016 White Paper means that it will rise in line with inflation for the next 5 years.
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It was 28%. The current rate of Corporation Tax in the UK is now 19% and that's payable on profits which of course can be reduced by claiming all sorts of expenses which the average PAYE employee can't. The more employees earn the more tax they pay when compared to their company director equivalents. The very reason so many individuals decide to set up limited companies is to reduce their tax liabilities.
Given the reduction in CT, my rusty maths indicates that those greedy BBC stars who're operating via limited companies are already going to benefit from what amounts to an approx. 30% reduction in the tax they pay. Nice.