By Tom Winnifrith | Thursday 18 May 2017
Jeremy Corbyn has promised to raise Corporation Tax from 19% to 26%, while the tax on dividends in the UK is now 25%. As far as I know that is not going to be increased by Labour, but who knows? The bottom line is that, as a part-time Greek resident but UK taxpayer, it actually makes sense for me to become a Greek resident and Greek taxpayer if Labour wins. Yes, this economic basket case run by socialist lunatics is a better place for me to do my business than a Corbyn-run Britain. Here are the maths....
In Greece, Corporation tax is 29%. However if your business is based on an island with a population of less than 3,100 you get a 40% reduction in that rate. But the tax on dividends is just 15%. And so let us, hypothetically, say that my business makes £100,000 profit. If I stay in the UK I pay £26,000 in corporation tax under Comrade Corbyn and then when I pay my retained earnings out as a dividend I get to keep 75% of £74,000 = £56,500.
In the economic disaster zone that is Greece, the TW company that will be charging the British company £100,000 for my services will pay 29% tax as I am based on the mainland. But I will then pay only 15% tax on the retained earnings of £71,000, which will all be paid out as a dividend. That is to say I get to keep £60,350. If I lived on a small island (and I can think of a couple which I love and where property is very cheap), my net take is £70,200.
So I am noticeably better off living and paying tax in a country with a far nicer climate than Britain and where the cost of living is far lower. Greece is hardly a country that stands out as one of those low tax offshore places which attract the super wealthy and have dynamic economies as a result. But the fact that Greece is more attractive than the UK under Labour's Manifesto plans shows what will happen to the UK tax take in the unlikely event that Labour wins.
Corporation tax rates may go up as will tax rates for the top 5% of earners and the so called fat cats but tax takes will go sharply down as they did in the 1970s the last time a hard left Government drove Britain to bankruptcy and an IMF bailout.
Turning Britain into a less attractive place to do business than Greece is quite some achievement but that is something that lunatics such as Comrade Corbyn, shadow chancellor Semtex John McDonnell and commie journalist and BBC darling Paul Mason plan to do within weeks of getting into power. None of the three have any entrepreneurial experience, they have spent no time in the real world and boy does it show. This is why their maths do not add up, whatever that fool Darren Atwater thinks.
Meanwhile I'm off to check out Greek islands. The new tax haven from Corbyn's Britain.
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