StepOne wrote:didds wrote:Put another way maybe - if Ltd Cos are no longer really a benefit why would anybody now use one for contracting?didds
I still use one, for my part time work with a local software company. Tax wise I am better off and so are they. Am I missing something?
I do wonder why the gov went through the hassle of ir35 when they could simply have started taxing dividends at 20% (outside an ISA) and solved the problem as a stroke.
Because of the other payroll taxes such as employers and emlloyees national insurance the apprenticeship levy and national insurance at the reduced rate for higher rate tax payers. None of those would be paid on dividend income.
But instead, we have 25% corporation tax, a virtually abolished tax free dividend allowance plus swingeing dividend tax rates on money that's already had corporate tax levied.