Does the Government think that punching everyone in the face means no one will complain?

rosie1959

Growstuff have only had a quick look but does it not include 1.25% on dividends as well as NI

Sorry, I'm not sure what you mean.

Growstuff an extra 1.25% tax on share dividends from April 2022
He was talking very fast but I think that’s what I picked up

On Cityam sorry can’t do links

I'm just watching and that is what he said rosie1959

Thanks PippaZ my ears did prick up at this point as we draw dividends on our Company

A total tax rise on income of 2.5% which includes contributions from earners and employers.

Arise of 1.5% on dividends.

0% on interest or rent.

If there is an increase of 1.25% to pay on dividends as well as 1.25% NI both from April 2022, seems fairer than just an increase of NIC’s.

Yes GrannyGravy seems reasonable many Limited company owners do not pay National Insurance just personal tax and of course Corporation tax

and national insurance on their wages surely? we do

Depends how much you pull as a wage JaneJudge

JaneJudge

and national insurance on their wages surely? we do

Yes Directors of Ltd.Co’s pay NIC’s on their earnings, we also have to pay a lump sum of our tax upfront.

Upfront?

I can't see how he can say the £100,000 is protected. He is comparing it to the £23,250, which is currently whittled down until it leaves the person with £14,500. He has compared the £14,500 to the new (in 2023) figure of £20,000. That seems to be the figure you must be left with. The £100,000, if his comparisons are real, will mean many still having to sell their home as it will be reduced.

I am not offering an opinion on this. I am just wondering if we have been told all the facts, if it has been spun or if I have got it wrong.

I’m only listening with half an ear as cooking a chicken (madness!) but I thought it was said that you only had to pay the first 86k+ after which I am assuming it will be picked up by our payments into the NI?

That’s what I assumed too WWMK2.
I will listen carefully to the news at six.

I would be very much happier if they published a form of accounts every year for our perusal.

A simple how much NI was collected and what it was spent on would suffice, including the new levee.

What he said was you will never pay more than £86K The news programmes will have their clever people all over it and will explain it later or tomorrow, I'm sure.

Pippa Where have you got the idea that £100k is protected. That was in May's plan, but not this one.

My understanding is that the maximum people will pay is £86k. Those with assets of less than £20k will pay nothing. In England, the amount can be deferred anyway. The people inheriting a deceased person's estate will receive a maximum of £86k less. Quite honestly, that's peanuts on a high value house, but significant for a low value one.

In any case, people have begun to look at the figures and it's clear that the bulk of the money raised won't go into social care, but the NHS. Claiming that this move has "fixed" social care is a con.

GrannyGravy13

If there is an increase of 1.25% to pay on dividends as well as 1.25% NI both from April 2022, seems fairer than just an increase of NIC’s.

The levy still won't be charged on rental incomes or the interest on investments. It's a tax on work rather than unearned income.

rosie1959

Growstuff an extra 1.25% tax on share dividends from April 2022
He was talking very fast but I think that’s what I picked up

Yes, I've read that now too. However, the levy still won't be paid on interest from investments.

Can't hit everyone at once Growstuff buy to let landlords have already been hit with extra 3% stamp duty plus reduction on what they can claim on the income they get

rosie1959

Can't hit everyone at once Growstuff buy to let landlords have already been hit with extra 3% stamp duty plus reduction on what they can claim on the income they get

Sorry! That's a distraction from the amount they earn from unearned income. They're still doing very nicely! This will make investing in buy to lets even more attractive and push up property prices even further.

Don’t really see it as unearned income Growstuff if they have the gumption to invest in property and deal with all that goes with it then good luck to them
Of course they can earn from it they wouldn’t do it if they couldn’t

growstuff unearned income has to be declared on yearly tax returns.

…comparing it to the £23,250 which is currently whittled down until it leaves the person with £14,500…

I’m confused here Pippa, are you saying that the remaining £23,250 is actually not what a person can keep at present? It’s relevant because my mother has just gone into care, and the two years to wait till these new rules are applicable will mean she will already have paid for her care and have no money left except the £23,250 by then. I wouldn’t want her to be deprived of her last little bit of money.