Sunak has decided to help out certain industries - at last.

MayBeMaw

I just don’t get the “at last” part of the thread title!
It strikes me that Rishi Sunak has responded very promptly to a situation which is only just developing.

Omicron has been on the march in the UK for at least 3 weeks now, and hospitality and the entertainment industry have been hit pretty badly for at least the last two. I don't see Sunak's action as being particularly prompt...

It's like the government never plans for a worst case scenario.

MaizieD

^A tax which taxes all income, including from shares and property, would have been even fairer.^

Investment income is taxed, it's just that it's taxed at a lower rate and there is a tax allowance on it, too.

I queried this once on twitter and was told, rightly or wrongly, that dividend income is paid from net profit; the rate of 7% was lower than the standard income tax rate because the company profit had already had corporation tax levied on it. I don't know if our taxation experts can confirm or refute this. But it still feels inequitable.

But there's no National Insurance, which is just another form of taxation - that's my point.

In any case (getting back to the OP) the amount being offered in support (£6,000 per business affected) is going to have much effect.

MayBeMaw

I just don’t get the “at last” part of the thread title!
It strikes me that Rishi Sunak has responded very promptly to a situation which is only just developing.

I agree with you MawBeMaw.

I think I paid enough tax in my life before retirement. I don't need to pay any more!

There has been financial help for almost everyone from the chancellor since the pandemic began. BUT no help at all for pensioners who have had to shoulder increasing costs on essentials like food and energy.

In answer to Maizie

Dividends are paid from a company's profits after taxation so if a company has taxable profits of £100,000 the CT on that would be (at the lower rate of 19%) £19,000 leaving a balance of £81,000 that could be distributed as dividends or retained in the company (or a bit of both).

The individual receiving the dividend has a tax free allowance, originally £5000 but currently £2000. Depending upon the indivdual's other income the tax liability is 7.5% or 32.5%. This is being increased by 1.25% from April 2022 on order to help fund the health and social care settlement as announced in September.

It really isn't true we have all had pay outs/financial help! Lots of people carried on working and had no loss of income and didn't need any help! My husband didn't, in fact he has been busier. We don't bemoan others who needed support getting it

tens of thousands of self empoyed got no help.We are lucky we didn't need it but many who were newly self emplyed did.

No new money for the devolved nations its already factored into the Barnet formula ,so included in the budget we ae required to live within.How I wish Weatminster had to live within a budget ,then we woud't be responsible for around 10% of the debts they accrue .Why should we need to pay for London 's sewers or crossrail or HS2 or Big Ben or ANYTHING that has nothing to do with Scotland or our taxpayers? Devolution= power "given means power retained by WM . Usually for the benefit of England and the detriment of the other nations !!

Thanks for that explanation, Dinahmo.

Grow stuff, 'Many people work bloody hard, but don't have the opportunity to acquire assets.'. .. I was about to post much the same, so thank you.

philoheart

There has been financial help for almost everyone from the chancellor since the pandemic began. BUT no help at all for pensioners who have had to shoulder increasing costs on essentials like food and energy.

Almost everyone maybe, but approximately 3 million people, including many self-employed, received no help at all.

In any case, the support now being offered to hospitality, etc. is woefully inadequate. It's £6,000 per business, which for many won't cover rent and the wage bill for very long.

£6,000 is a paltry sum for any business trying to stay afloat. Many businesses who struggled financially have gone under.

Dinahmo

The hospitality industry is suffering badly once again through no fault of its own. Restaurant and pub bookings are being cancelled at a rate of knots because people are worried about socialising in the present circumstances. Not knowing exactly what will happen with Omicron. This industry will share £1bn financial support.

It's not just hospitality, it's also theatres and cinemas who are seeing a smaller footfall plus nightclubs and the travel industry. There are many tour guides who have had very little work since 2019. These businesses are not being helped at the moment.

Unfortunately there was a lot of fraud during the period of the first handouts. Many businesses applied for the bounce back loans and used them to fund personal spending, knowing full well that these were being backed by the govt. This of course, is in addition to the billions wasted in handouts to cronies for tests and tracing etc.

At the same time, as we have seen from GNers, many self employed did not qualify for any financial help. Come April, the employed will be facing increased NI contributions whilst the wealthy unemployed are not facing any tax increases at the moment.

Let me guess?........your a conservative voter! Ya?! Typical kept in dark , fed on you know what and haven't a clue about the real world , you sound like the matrons at a gym I went to ONCE! all directors' wife's never had a real job , smug....I can't go on I'll get banned..... Open your eyes and try to get your little head around the real world u employed? You mean the likes that sponge off ancestors or those that squirm out of paying any tax at all!? And the fraud you speak of? Wher ARE you getting your information from? Oh ya , hubby tells you what to think..........

Okay to take me out of the category of those you seem to frown upon, ie have property and don't work I forfeit my home giving it away for nothing to say the local authority or housing association where do you suggest I live whilst waiting to be assigned a haven. What about those who have contributed to a pension whilst working and still pay tax on the meagre monthly amount received. Take it you don't own any assets or accept any payments from government sources funded in part by the asset holders eg property tax, income tax, inheritance tax.

Here here. Scotland has been working much harder to restrict the impact of Omicron which has- of course- had an impact on the hospitality industry. But until Westminster opens its purse, devolved nations get nowt extra

4allweknow

Okay to take me out of the category of those you seem to frown upon, ie have property and don't work I forfeit my home giving it away for nothing to say the local authority or housing association where do you suggest I live whilst waiting to be assigned a haven. What about those who have contributed to a pension whilst working and still pay tax on the meagre monthly amount received. Take it you don't own any assets or accept any payments from government sources funded in part by the asset holders eg property tax, income tax, inheritance tax.

If you only have the home where you live, you're not using it for income.

I would also be classed as ‘wealthy (almost) unemployed’ and I have worked blooming hard, single parent too, all my adult life to get to this point

paddyann54

tens of thousands of self empoyed got no help.We are lucky we didn't need it but many who were newly self emplyed did.

No new money for the devolved nations its already factored into the Barnet formula ,so included in the budget we ae required to live within.How I wish Weatminster had to live within a budget ,then we woud't be responsible for around 10% of the debts they accrue .Why should we need to pay for London 's sewers or crossrail or HS2 or Big Ben or ANYTHING that has nothing to do with Scotland or our taxpayers? Devolution= power "given means power retained by WM . Usually for the benefit of England and the detriment of the other nations !!

More money for devolved Governmants , really

www.government-world.com/uk-government-to-confirm-extra-funding-for-devolved-administrations-to-tackle-covid-2/?print=pdf

Should No more money for devolved Gov, really?

Unfortunately, most of the technicians and back stage staff in the theatre and arts industry are freelance workers and won't see a penny piece (again) from the government as it is the venues who are receiving grants, not the workers. I work in the industry but because I have a pension I survived but close friends of mine have used up all their savings (put aside for old age) and at least two have lost their houses ...

Mummer I'm sorry but I do not understand your response to my OP. Perhaps you could clarify it and I will then respond.

Mummer I've just reread your comments. How dare you?

I will respond just to show you how wrong your are.

I am an accountant whose clients are mainly self employed artists and artisans. They do not earn a lot of money and I do not charge them exhorbitant fees.

I have voted Labour all my adult life, apart from the occasional tactical vote for the SDP/LibDems.

I have no inherited wealth

The information mentioned has been obtained from the financial press, accountants fora and HMRC.

Your apology will be gracefully accepted.

What a disgusting post Mummer. You owe Dinahmo an apology. I’d like one as well for being a conservative voter who has worked all her life and has a rather better grip on reality than you seem to have.

Thanks Germanshepherdsmum