If you were a multimillion pound international organisation planning to transfer your HQ to Switzerland or Ireland then you will be happy with the reduction in corporation tax rates. However, if you are a medium size company or group then these are uncertain times and you had better get your skates on and accelerate any capital spending.
This article highlights reducing corporate tax rates and explains that this may be to alleviate the cost of new pension rules forcing more employers to divert money into pension savings for employees from 1 October 2012.
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Self employed, Tax
There is always considerable discussion on the merit of paying dividends or bonuses in family or sole proprietor owned director/shareholder companies.
Typically, articles highlight the factors to be considered and the risks but then poorly illustrate the tax savings. So, I have done just the opposite.
I have taken just one scenario, illustrating the £695 saving available on a £10,000 bonus or dividend payment to a higher rate tax payer (basic rate tax payers save £1,783).
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Self employed, Tax
There are hundreds of different rules governing tax and national insurance contributions and even I find it a struggle to remember the changes year on year.
Given that individual circumstances can be just as complicated it is difficult to illustrate how the combined tax and NIC rules reduce gross income. But below, I have illustrated the simplest situation for the self employed and employee in 2008/09 and 2009/10.
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Self employed, Tax