(1/5) The three-person tax problem.

It's possible to work for the same employer and be taxed in different ways depending on whether you're:

3⃣A limited company

Read on to find out more👇
(2/5) These differences arise because of the different ways the tax system deals with different things.

Employees pay income tax and national insurance.
(3/5) The self-employed pay income tax and Class 4 national insurance, which is lower than an employee.
(4/5) Owners & sole directors of limited companies can pay themselves a salary so just enough national insurance is paid to qualify for a state pension.

The rest can be paid in dividends, with a lower rate of income tax, while the company still pays corporation tax on profits.
(5/5) We're exploring the three-person tax problem in our evidence session on Tuesday 20 October at 9.30am as part of our #TaxAfterCoronavirus inquiry.

📺Watch it live here👇


And find out more about our inquiry here👇


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More from @CommonsTreasury

14 Oct
⏳One hour to go until our evidence session on #decarbonisation and #GreenFinance.

We'll hear from:

✅Saker Nusseibeh @FedHermesIntl
✅Sandra Boss @blackrock

📺Watch it live at 2.30pm here👇

parliamentlive.tv/Event/Index/d0… Image
We're underway with our evidence session on #decarbonisation and #GreenFinance.

📺Watch it live here👇

parliamentlive.tv/Event/Index/d0… ImageImageImageImage
.@stevewaygood from Aviva Investors told us that climate change is the world's biggest market failure. Image
Read 11 tweets
22 Sep
We're underway with our evidence session on UK customs policy.

The witnesses are:

Tim Reardon (@Port_of_Dover)

📺Watch it live here👇

First up, @MelJStride asks if companies are ready for the end of the #Brexit transition period on 1 January.

@AnnaJerzewska said:

🗣️"On the whole, companies are not ready for 1 January."
.@Eliz_de_Jong from Logistics UK told us that we need double the number of customs agents than currently exist for #Brexit borders.
Read 6 tweets
15 Sep
🔜One hour to go until our evidence session on #TaxAfterCoronavirus. We'll hear from:

✅Charlotte Barbour, ICAS

✅John Cullinane,

✅Anita Monteith,

📺Watch it live today at 09:30 here👇

parliamentlive.tv/Event/Index/80… Image
And we're off with our #TaxAfterCoronavirus evidence session.

📺Watch it live here👇

parliamentlive.tv/Event/Index/80… ImageImageImage
Asked by @hbaldwin whether reduced rates of tax for self-employed people are justified, Charlotte Barbour (ICAS) said that it's hard to justify why people doing similar work pay different rates of tax.

John Cullinane (@CIOTNews) added: it's "hard to justify these differences." Image
Read 5 tweets
9 Sep
The next evidence session for our inquiry into #decarbonisation of the UK economy and #GreenFinance is just about to start.

📺Watch it live here👇

And we're off!

📺Watch it live here👇

parliamentlive.tv/Event/Index/0f… ImageImageImageImage
.🗣️@emilyshuckburgh tells us that we've experienced what a global shock looks like with #coronavirus, adding that "the state of our climate, if we do not address that, is going to create a much greater global shock." Image
Read 11 tweets
2 Sep
⏰One hour to go until our evidence session with Andrew Bailey, Governor of the Bank of England, alongside members of the Financial Policy Committee and Monetary Policy Committee.

📺Watch it live at 14:30 here👇 Image
📺Here's the link to watch our evidence session with the Governor of the Bank of England live at 14:30 today:

We're underway with Andrew Bailey, Governor of the Bank of England, with members of the Financial Policy Committee and Monetary Policy Committee.

📺Watch it live here👇

parliamentlive.tv/Event/Index/98… Image
Read 9 tweets
1 Sep
📺We're underway with the first evidence session of our #TaxAfterCoronavirus inquiry.

The witnesses are:

➡️Prof. Philip Booth from @iealondon

Watch it live here👇

parliamentlive.tv/Event/Index/63… Image
Paul Johnson from @TheIFS said that if you want to raise significant amounts quickly, the income tax rates could be raised by a few points.

Gemma Tetlow from @instituteforgov said broadening the tax base rather than increasing the rates would be favourable. ImageImage
.@JulieMarsonMP asks: is the UK at its taxable capacity?

Some agreement amongst the panellists that the UK is below many EU countries so there is scope for the UK's tax burden to be higher.

Prof. Booth added that the UK can only go higher with a much better-designed tax system. Image
Read 6 tweets

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