Posted this in the QT thread but probably better in here...
Labour stating that anybody earning under 80K a year won't be worse off through taxation is, quite simply, bullshit.
I earn circa 25K a year and will be thousands of pounds worse off under a Labour Government. Some example figures of how Labour's plans may affect a small Limited Company director...
Currently, on 20K profit you would pay £3800 in CT. Paying yourself 25K in wages & dividends you would pay £825 in income tax. A total of £4625.
Under Labour, on 20K profit you would pay £4200 in CT. Paying yourself 25K in wages & dividends you would pay £2500 in income tax. A total of £6700.
I suppose some people might ask why I should get 'tax breaks' on dividend payments when your 'normal' employee pays standard rate on anything over the threshold but for those people I'd like them to consider that as a Director of my own Ltd Company I get no annual leave entitlement, no holiday pay, no sick pay, no parenting pay, no minimum wage and no job security.
.
.
.
Note - I've edited this as of course, I wouldn't be able to pay myself 12.5K in dividends if I'd only made a profit of 10K. I originally used the 10K figure as it was easier to do the maths :)
Do you have a mobile phone? If so get rid of it. Do you have a telly? If so get rid of it. They are luxuries whenever poor people complain about not having enough to feed themselves properly.
Consider your extra taxes on the money earned from your own business as small repayments on the money you havent been paying for the past ten years.
If you get sick you'll be glad you did.
If you get old, you'll be glad you did.
If you lose your license and have to rely on infrastructure to get around, you'll be glad you did.
If in later life you need full or part time care, you'll be glad you did.
If you have kids or grandkids in school, you'll be glad you did.
If you have friends or loved ones in the public sector, you'll be glad you did.
If you pay for gas or electric, or water, you'll be glad you did.
If you need a policeman to actually arrive sometime, you'll be glad you did.
If you or a loved one ever needs a roof over their head when in financial straits, you'll be glad you did.
I could go on and on.
I hate to break it to you but we are building a better country and the time when that was paid for by the poorest and weakest through cuts and being told to "fuck off scrounger" is coming to an end. It's time to step up and contribute a bit more to society.