Grunff wrote:

Tell me about it - the 19% flat on dividends is not looking nice at all.


Only for businesses with profits under 50K - so yet again he is
playing screw the small guy...


How does that work out? (I don't do our taxes, or pretend to understand
most of it - it just sounded bad).

I don't fully understand how all of it will work (as I expect neither do
the IR yet - details usually dribble out over the weeks after the budget
in various IR## notices).

The basic impact seems to be if you have profits of under 50K and
declare a dividend, there will be an extra 19% corporation tax to pay to
bring your total CT bill upto the figure you would have paid if CT had
been levied on the whole distribution at the 19% level. It effectively
nullifies out the benefit of the 0% band.

They have not yet made clear exactly what happens when you retain
profits for future years, or what happens if you say declare a dividend
larger than your actual profit for one year, using reserves from past
years and so on. Needless to say yet more red tape.

--
Cheers,

John.

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