4 Day Week - How
In yesterday's Guardian, excellent columnist Sonia Sodha discussed how to make a 4 day week a reality; a three day weekend for many of us would be a very happy prospect!
Shadow Chancellor John McDonnell has hinted such a proposal may feature in Labour's next manifesto and only last month the TUC backed the idea.
For those employed, such an opportunity would naturally require the permission and sound planning of the employer but for the business owner this concept could become a reality very quickly.
Consider the business owner's tax reality; Directors are now taxed harshly for daring to take dividends to compliment salaries. Announced in 2015 the Government's action to hurt employers in the private sector really bit down hard in January and July this year with countless Directors paying tax on dividends for the first time. Setting aside the obvious question as to why our accountants did not provide advance warning and investigate alternatives, the reality is now that any Director choosing to draw dividends [after accounting for the corporation tax bill - 18% from April 6] over £27,000 will pay 32.5% in income tax [7.5% on any dividend over £2,000 and up to £27,000]
In other words a Director taking more than £27,000 in dividends has an effective tax rate of 50.5%.
I support fully the authorities efforts to outlaw tax evasion; we all know how little the huge corporations pay and seemingly get away with.
This is about small to mid sized business's making use of what is available to all; opportunities which have been around for years and which can make a significant difference to all who aspire to a better life, a better lifestyle, maybe even a 4 day week.
You will not be pushed in an alternate direction; you will be provided with an overview of the potential inefficiencies of your current withdrawal policy and the further options available to you. The outcome? Your decision to continue taking dividends - or moving to something which will truly reward you for all that you do - will be informed. Unlike now.
How? Get in touch. It will cost nothing to find out.