Well, it appears that it has taken the intervention of Taxation magazine editor Mike Truman to show that I was indeed right all along with regards to the correct tax position of a personal service company shareholder.
Dividends are subject to an effective rate of tax of 40% and 50%, which is different to the rate on salary. The rates have always been different and always will be, as I have maintained all along.
And furthermore, this is less tax than paid through salary so it increases the tax gap. By at least £5bn, I would say.
One rather startling revelation though, is that the Accountant Who Launched a Thousand P45s in the nanny industry says that he has never actually done said calculation.
Well, that is just plain old sophistry because, as you can see from this article, he is more than capable of doing it correctly here. It’s probably a massive lie too.
Added to this, I have been subjected to numerous ad hominem attacks, not least from Christie Malry who I hope will be gracious enough to offer an apology to me now.
On a positive note, I feel this utterly vindicates my calculation of the tax gap because it shows how very good with percentages I am and also how good my grasp of the basic principles of the UK tax system is. I am not a world renowned tax expert for nothing you know.
So all the people who rubbished it, like Christie Malry, Mike Truman of Taxation magazine, Ed Hagger and Mike Truman of Taxation magazine, ought to apologise now.
Once again, I’d like to thank Mike Truman of Taxation magazine for bringing some sanity and showing everybody that my figures are, and always have been (and always shall be), 110% correct.
That’s a little humour, by the way. We all know its not possible to have more than 100% of anything. Or at least we should. You right wing neoliberal trolls wouldn’t surprise me with anything. Morons.