Story: Taxation changes may hit IT sector

• 
• 

Simplistic

MSCs are used by many as a way of getting someone else to do the massive quantities of paperwork involved in running your own company. The point of taking some of the profit as dividend was meant as an incentive to those who choose to take the risk of going it alone. Brown has now decided that what was originally intended as an incentive by his government is now tax evasion. Moving goalposts much !?

Actually, many of us choose to keep out of this all together by not taking any dividend and taking it through PAYE instead. This of course means we get less out of the deal, but in most cases not by much. Bear in mind that we would pay Corporation Tax on dividend and income & NI tax on PAYE pay. It does however keep the HMRC happy, which, with the powers they have, is a Very Good Thing.

Also bear in mind that we are never going to get anything back from the NI that we pay more of. If my company doesn't do anything for a few months, I am not entitled to any benefits and not all of us are minting it. I for one would make more being a permy, I choose to go it alone for lifestyle reasons.

• 
• 

• 
• 
• 

Full Talkback thread