Gordon Brown is apparently set to introduce National Insurance on dividends in his budget this year. The move is likely because of the lack of business revenue received by the Government following the introduction of a £10,000 zero tax on profits threshold.
Our View
Here we go again! Giving it with one hand and taking it back with the other. Gordon Brown introduced the £10,000 limit to help small businesses grow and be at the forefront of European businesses.
Introducing National Insurance on dividends taken will crucify small businesses and promote offshore business dealings.
Whilst the Government would apparently not confirm the proposals, they did say that nothing would be ruled out. Brace yourselves!