Tax break imminent for those on high earnings?

[Cyclone]

Indeed, I'm well aware of the downsides of being self-employed re: sick pay, holiday pay etc... etc...

 

You will of course be aware that for individual traders the ltd company route is not the only one. Sole traders for example have a kind of salaried tax regime more akin to an employee. So many of your small shops, gardeners, builders, plasterers, tradesmen of all kinds set up as sole traders will be paying their fair share, although I'm aware many of them are a headache for the tax man. The advantages of the limited company are succintly described here:

 

"Tax-wise, limited company directors have the potential to pay less tax, as they can pay themselves small salaries and high dividends (which are free from NICs), whereas sole traders pay themselves a salary which is liable for NICs as well as income tax."

 

http://www.bytestart.co.uk/content/19/19_1/limited-company-or-sole-t.shtml

 

Dividends under £300k are taxed at 20%

 

 

That's one advantage of a limited company, although that statement isn't accurate. There are many other reasons why someone would use a company, I simply couldn't operate as a sole trader, no client would touch me without there being a legal company to work through.

And from my point of view, insuring the company and limiting my personal liability is a very sensible thing to do.

[Mecky]

I gave you my reply, it matters as much to me as I1L2T3 and Rupert. It's hardly my problem if you don't know how much it matters to them.

 

So in other words you just don't want to answer because you know you will lose.

[Cyclone]

I answered the question, you just don't like the answer. What can I 'loose' by answering that question, was there a secret competition that only you know about?

 

Maybe you should tell me what my answer should be, that way I can be sure that you'll find it acceptable.