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  • Tax

    More taxes take effect in 2018

    Article from Telegraph lists a whole raft of new taxes for 2018.



    http://www.telegraph.co.uk/money/consume...h-attacks/

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    Learn Change and Adapt ?????

    Govt has given the OK for Council Tax to increase by 6 % per year with no local referendum  recourse required.

    So year on year there will be a 6 % CT increase.

    This is more than any rent increase most LL  would apply.

    It will principally affect HMO  and other LL  offering inclusive  rents.

    Council tax is becoming and will become a real cost burden on tenants and LL  alike.

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    https://www.gov.uk/council-tax-bands

    Postcode checker here.

    Incase you think you are in wrong banding.

    https://www.moneysavingexpert.com/reclaim...nds-change

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    On Hiatus till further notice........

    Don't let anybody tell you what you can or can't achieve. Every problem has a solution , and somebody else's solution may not fit your circumstances.


                        Rant warning.

    Conservatives Manifesto 2015 pledge not to raise VAT, national insurance or income tax.

    I'm getting tired of the U turns and false promises and Lies.

    What is the point of voting? I don't think I will no longer bother if I can't trust them.

    Government is so crafty. The dividend slash  https://www.moneysavingexpert.com/news/sa...be-shelved

    "Politically, it makes sense to ditch unpopular policies during an election campaign, in order to avoid upsetting voters."

    https://www.digitallook.com/news/news-and...37552.html

    Yeah 4.8 million of them. Hammond and tories KNEW in march soon after the budget (6th march) election was going to be held and probably pushed for it. Let's get elected again first. Then shaft everyone who voted for us. 

    surprise snap election was called by May on 18th April.

    Hammond u turn on NIC for self-employed in 16th march https://www.bbc.co.uk/news/uk-politics-39287222

    Mr Corbyn said the government should "apologise" for the stress the announcement had caused Britain's 4.8 million self-employed people.

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    On Hiatus till further notice........

    Don't let anybody tell you what you can or can't achieve. Every problem has a solution , and somebody else's solution may not fit your circumstances.


    I believe it is now time to return to the savings culture.

    Not so much to save and then spend but more to build resilience should Govt come up with anymore pernicious taxes.

    So everyone should imagine they have been taxed so much that they need at least a years worth of income saved to cover such situations.

    This will remove a massive amount  of spending from the economy  but the public will say we don't have a choice as you can't be trusted  quoting S24 as a classic example.

    With the Mortgage Rescue Scheme being converted to a loan many more will face tough times.

    It pays therefore to have sufficient  savings that you go for a year without any other income and survive.

    This is an aspirational amount but I believe it should be attempted.

    It will take about 5 years to save enough  just in time for the even more taxing; in all respects Labour Govt which will happen!!

    Only the rich and the feckless will be OK

    The feckless are covered by full welfare  and the rich create their own welfare sustainability

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    Good morning. And let's hope it's a happy New year.

    I think most sensible people  all ready saving as hard as they can, ever since crunch. I knew taxes had to rise, but never expected a limit on success. Reducing your ability to succeed through ceilings, limiting any entrepreneurship or ambition. demoralising, (death by a thousand cuts.) It's only money, but for once in my life I'm concerned for my children's future. Too late to get rich and so I choose to be poorer. Why should I pay for feckless?

    Workers going to be forced to put more into pensions. Lock away access till 55 or later.

    Nanny state intervention.

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    On Hiatus till further notice........

    Don't let anybody tell you what you can or can't achieve. Every problem has a solution , and somebody else's solution may not fit your circumstances.

    Little help understanding maths.

    Any dividend income received above £2,000 will be taxed at 7.5% if you are a basic-rate taxpayer, 32.5% if you are a higher-rate taxpayer and 38.1% if you are an additional rate taxpayer.

    Buy future property in company if basic rate taxpayer, worth it.

    If already higher rate tax payer what is the point??.  Double taxation and indexation relief.

    Anybody property business who incorporated 2015 just got shafted? And will do so in future. More difficulty access money.

     Struggling mortgages---

    history repeats itself  - DIluted MIRAS for interest only mortgages or low paid struggling/ just about managing types??

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    On Hiatus till further notice........

    Don't let anybody tell you what you can or can't achieve. Every problem has a solution , and somebody else's solution may not fit your circumstances.


    It seems that those who have struggled and striven and succeeded are being penalised. .

    The way you accurately  evidence the issues draws me to conclude that anything that makes you a HRT should be avoided

    Stay within BRT territory  and your past endeavours will pay more effectively.

    Work to reduce leverage everywhere  as you will be penalised  for gearing up which is what entrepreneurs  do.

    As you effectively  intimate what we have going on here is a tax on aspiration.

    It comes to the point  of being a HRT when it becomes pointless achieving further

    So if stuck with S24 it makes clear sense to massively deleverage.

    Fund pensions from company income to avoid onerous  new tax policies etc; etc

    This Tory Party is now Labour Lite.

    It is obvious the Tories are abandoning their traditional electoral  demographic and are making a play for the under 40's

    It is so obvious it is actually quite embarassing to watch them fawning over the millennials  in attempts to ingratiate themselves to maintain their clawing grip on power

    The millennials aren't buying it

    They are all heading for the siren calls of their new Messiah JC.

    Now we all know from those Monty Python documentaries  that actually he was a very naughty boy!

    Perhaps we should start calling JC........Brian!!!

    But it certainly seems it is worth doing whatever you can to avoid being  a HRT..Salary sacrifice is something that  need to be utilised

    But even that is due to be rolled  back.

    It seems there are very few avoidance possibilities remaining.

    It will reach the point that people start evading rather than just attempting  to avoid.

    There will be a reaction as per Network and P Finch

    We're  mad as hell and we're not going to take it anymore

    I use this as my LRS  picture.

    P Finch looks remarkably like me from some angles! !

    Even the return of Blair  etc would be preferable  to the current  prospects.

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    You have hit the nail on the head

    Your comments on dividend are right

    in a Ltd Co the extraction of profits is higher than BTL in your own name

    It avoids S24 but nothing else is better

    Happy Days

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    Learn Change and Adapt ?????


    Yes, dividends only let you take £2k tax efficiently. Normally they would be taken for company funds on which corporation tax has been paid.

    But there are other ways. If you don't have any other salary you  could have the company pay you one. The company can claim that as an expense against corportation tax and if you keep it below the NI threshold of ~£8k you would only pay income tax on it.

    The most efficient way is to pay a directors pension. The company can claim that against corporation tax and you don't have to pay any tax so long as you don't exceed your contribution limit. That is £40kpa normally, or £4k if you have drawn from a flexible pension. Of course it is tied up until you are 55 but if your aim is to provide for your retirement that shouldn't be too much of a problem. If you are over 55 you can draw it out almost immediately.

    I would be able to take ~£14kpa through a combination of those methods, but would have to buy several more properties to get my company's profits to that level (currently it only has two).

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