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The details are rather vague, but it appears as though the new measures will mean a type of National Insurance being levied on dividends from what are known as Close Companies.
Close Companies are, generally speaking, those which have less than 5 directors or shareholders. This does of course mean that almost all contractors, as well as hundreds of thousands of other small businesses, will be caught.
See article here.
It concludes: So, what would be the cost to contractors of this new measure? Well, it would be an additional £2064 pa for profits up to £30420, and another £1 for every £100 earned after that.
If these leaked details do prove to be valid then this is not quite the blow that we at first thought, and assuming IR35 is abolished as is generally thought, then contractors now caught by IR35 would actually be better off!
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New Dawn
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