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There are significant tax savings, and theoretically limited liability. The significant tax savings will change next tax year with changes in dividend taxes and
by peteretep 11y ago
There are significant tax savings, and theoretically limited liability. The significant tax savings will change next tax year with changes in dividend taxes and NIC contributions. No-one is really sure of the actual impact at this point.
- nikon 11y ago7.5% on your dividends. About 3k a year for a 100k earner... Nothing to go permie about.
- peteretep 11y agoI had thought the jury was still out on this - I do hope it ends up being only that amount though.
- logiclabs 11y agoThe rates for dividend payments are set but because of the triple changes of the budget - dividends, employment allowance and travel/subsistence expenses, it could affect some contractors a lot worse than others. Though it's mostly those who rack up large commuting/accommodation expenses chasing high paid work in London while not living anywhere near there. The travel/subsistence rules haven't been set yet but it's likely HMRC will crack down on them quite hard.
- benashford 11y agoThere's a calculator here: http://www.hl.co.uk/news/articles/budget-2015-changes-to-dividend-tax-explained http://www.hl.co.uk/news/articles/budget-2015-changes-to-div...