Brian
Eating fat, staying slim
So using your example, ET.The DT reports this morning that under Labour's manifesto proposals of an increase in corporation tax, increase in the taxation of dividends and the removal of valuable reliefs, a company director earning £40,000 who pays him or herself with a combination of a small salary and dividends could be as much as £6000 worse off.
This category would include shopkeepers and IT consultants, and self-employed plumbers, builders and so on. In other words normal middle income earners who are often already struggling to make a decent living whilst investing in their businesses, and probably includes a good number of pfm members.
How would this new tax contribution under Labour of £6,000 pa more compare with someone earning £40,000 pa on PAYE?
Here is a link to a tax calculator for £40,000pa.
https://www.netsalarycalculator.co.uk/40000-after-tax/
How much tax is the IT consultant contributing on their £40,000pa ‘small salary + dividend’ idea? I doubt it is more than what you see in the calculator and if a lower amount, these people are not paying their way and it needs to be stopped.