They can include dividends. But what they omit on left wing news channels ready to bash the government is that dividend payments avoid tax. So do labour MP’s and journalists.

Edited by Rudi Hedman (12 May 2020 1.26pm)

COYP

Except they don't really. The government is using the dividend argument to bash the IR35 agenda (which granted needed review)

That's said I suspect in doing this they have shot their own foot - as if dividends are not a form of income but rather a return on investment then they can't legislate against it. How can someone be taxed as employed if they don't get the benefits?

Tax and NI for an employee in Basic Rate 32%
Tax and NI for an employee in Higher Rate 42%

Tax and NI for self-employed in Basic Rate 29%
Tax and NI for self-employed in Higher Rate 42%

Dividends are paid after Corporation tax of 19% - so 19% Corp Tax and 7.5% dividend tax for basic rate.

Tax and NI for salary and dividend in basic rate - 26.5%
Tax and NI for salary and dividend in higher rate - 51.5%

To give a rough comparison

Sole Trader earning £30k - tax and NI - £5,580

Limited Company equivalent (just based on a £30k equivalent)

£30k less 10k Salary- Corp Tax £3,800, Dividend tax - £1,162 = total £4,962

If a limited company director paid themselves solely by PAYE their average rate of tax would be over 45% as a basic rate payer.

So salary and dividend is not exactly a huge saving over self-employed and a lot of people run as limited to protect themselves. You run as a sole trader is fine as a one man band, but try employing someone and having them sue you rather than your company which is a separate legal entity.

Edited by robdave2k (12 May 2020 1.44pm)

I would guess that the percentage of the wage that the government will fund will drop below 80% to something like 50% or 60%

It was said at the start that Cummings would be judged on unknown waters.

Listened to O Brien briefly earlier on the school issue and even he said to a teacher that the percentages and odds were low, to someone non vulnerable. He couldn’t help but bring in why can’t parents mix if their kids mix, ignoring that everyone will end up thinking why not mix because the parents in their street are back to normal.

Edited by Rudi Hedman (12 May 2020 2.36pm)

COYP

Really - I thought the BAME numbers were significant and largely not understood.

Were they identified as a vulnerable group early on?