Budget 2015
- Thread starter jimmybell
- Start date
CornishRob
Senior member
Z4M-2006 said:
What calculator did you use?
I reckon I will be paying a couple of thousand more in tax
Liverpool
pvr said:
That's me shafted too then on the dividend 'game'
CornishRob
Senior member
pvr said:
I think its sort of right.
CT dropping to 18% in time, so your company will save money there.
Personally though, we will pay 7.5% over the first 5K at 0% upto the basic rate amount.
They are however increasing the personal tax free allowance slightly, but I also need to get some numbers through to see how much extra it will cost me.
I think it starts next April, so you maybe able to do something clever this year, to maximise any profits you have at the moment, rather than leaving it in your company!
Hence me waiting for the accountant to tell me what to do as it is all rather confusing on how it works and what the real impact is going to be.
Perhaps do a lot of R&D which gives 235% tax relief, but you have to do PAYE to get that - but that leaves more profit in the company which you can't take out as dividends then as otherwise it will cost you more again
Perhaps do a lot of R&D which gives 235% tax relief, but you have to do PAYE to get that - but that leaves more profit in the company which you can't take out as dividends then as otherwise it will cost you more again
Agree Paul. I'll see it the accountants view is and see what to do next. As a gut feel I expect to lose a fair bit.
jimmybell said:
mine is property. the tax relief on interest paid on mortgages was 100% and it will drop to 20% over the next few years. once it is at the 20%, i stand to be paying a significant amount of tax that was previously not taxable. the thing is, its such a massive hike. would anyone be happy to lose 80% of any perk just because someone decides after decades of doing it, they would rather not
because when you sell the house, you cannot claim back interest you have paid over the years to buy it. so if its cost you £120k in total and 20k was interest on the purchase price, you sell it for 120k. you will be liable for capital gains of 20k. beside that, a lot of people invested in property over the years because they were told by the government that they would not have to pay tax on the interest they paid and then suddenly with no prior warning they have abolished it
how would you like to be told that you are suddenly going to be taxed an extra 80% on something that has never been taxed before? i guess you wouldnt know until it actually happened to you!
how would you like to be told that you are suddenly going to be taxed an extra 80% on something that has never been taxed before? i guess you wouldnt know until it actually happened to you!
Property is a difficult one.
There's no right or wrong answer, in times of hardship, the arguably more important problem is a lack of affordable housing, caused (in part) by a rise in b2l ownership. Rather than build more homes, the govt has decided it's landlords fault, and they need to pay more etc etc.
The other side is, obviously, as envy says - landlords/property investors who knew property to be the investment of choice in the UK - are now being penalised.
However, if a system is broken - you don't keep it broken for fear of hurting the few (relatively well off) and leaving those in need to suffer, you make change, and change isn't always good for everyone. I'm surprised they actually made a change, usually once a system is in place its nigh on impossible to revert it because of backlash, even if it's wrong.
There's no right or wrong answer, in times of hardship, the arguably more important problem is a lack of affordable housing, caused (in part) by a rise in b2l ownership. Rather than build more homes, the govt has decided it's landlords fault, and they need to pay more etc etc.
The other side is, obviously, as envy says - landlords/property investors who knew property to be the investment of choice in the UK - are now being penalised.
However, if a system is broken - you don't keep it broken for fear of hurting the few (relatively well off) and leaving those in need to suffer, you make change, and change isn't always good for everyone. I'm surprised they actually made a change, usually once a system is in place its nigh on impossible to revert it because of backlash, even if it's wrong.
I didnt realise you had tax relief on mortgage interest that was all..
The housing market is badly broken IMHO Jimmy.... No available stock for FTB's,well heeled BTL buyers snapping stock up and renting back to the young people who are trying to get on the ladder..
Thats a totally different thread though ha ha
The housing market is badly broken IMHO Jimmy.... No available stock for FTB's,well heeled BTL buyers snapping stock up and renting back to the young people who are trying to get on the ladder..
Thats a totally different thread though ha ha
That's the change - BTL Landlords have tax relief that home owners don't. Arguably a bit of a messed up situation, hence, whilst it sucks people who had relied on it are gona lose out.. it's wrong to leave it as it was imo.
And yeah - don't get me started on the housing market. As a 'Londoner' it's hilarious here, an impossible situation for most. Myself and a few friends of mine have been lucky to get on the ladder but it's a pretty depressing for most unless you've got very wealthy parents or land a tidy (above avg) job.
And yeah - don't get me started on the housing market. As a 'Londoner' it's hilarious here, an impossible situation for most. Myself and a few friends of mine have been lucky to get on the ladder but it's a pretty depressing for most unless you've got very wealthy parents or land a tidy (above avg) job.
I can only imagine....
We get a bit more value for money up north but obviously the wages are crap in comparison...
The young people in our village have little to no chance of affording anything.... Houses start around a modest £120k but wages probably around £20k so payments unaffordable..
They can afford £550 in rent ( 2up2 down houses) but then have no chance of saving up for a decent deposit..
And so the circle starts of people never being in the position of owning their own home.
Very sad...
We get a bit more value for money up north but obviously the wages are crap in comparison...
The young people in our village have little to no chance of affording anything.... Houses start around a modest £120k but wages probably around £20k so payments unaffordable..
They can afford £550 in rent ( 2up2 down houses) but then have no chance of saving up for a decent deposit..
And so the circle starts of people never being in the position of owning their own home.
Very sad...