It seems that after twenty years, the idiotic franchise system for the railways has been terminated (why didn't New Labour bin rail privatisation as soon as it got in?). It would seem the railways are to be run as concessions now.
Franchising worked well enough till the Treasury got greedy. Doubtless in 2010, pushing the train companies harder looked like free money for the government. They got away with it in the short term with companies overbidding and foreign state-backed operators bidding for experience ahead of EU-mandated competition on their own railways. But once you've pushed it beyond a level where the company can't make any profit, the franchise is fucked, the current holder tries to find a way out while cutting costs, and it's much harder to find serious bidders.
There's also a grumble that Limited company owners who pay themselves from dividends aren't getting any help.A firm employing 6 people on one third time will have to pay more than one employing 4 people on half time
Paying yourself through dividends is far more common than you think. I'm one of them.Bones McCoy wrote: ↑Fri Sep 25, 2020 1:52 pmDividends are a tricky one.
I know a lot of IT contractors who try to put as much money through dividends as possible.
In their case it's a tax efficient decision.
There are probably other workers in much less affluent sectors who are genuinely struggling, so I don't like to be too judgemental.
In this case I have some sympathy with Sunak.
If he starts to compensate for lost dividends, then he'll be liable to every shareholder and investment house in the country.
Before you know it you're doling out compo for lost commercial rents, underperforming house prices, and disappointing scrip-dividends.
It seems to me that our baroque tax regime with all its funny loopholes needs a thorough overhaul.
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