Summer 2005 Newsletter Content More of the same? Around the world Hot tips Inside out? Sweet sacrifice Simple trust Done and dusted? Open immediately File under E An Inspector calls CO still OK Open for business High PHI Arctic chills Duty calls Pensions Fuelling around WIP round Win some, lose some Take it and go? Party talk Work less, earn less Making adjustments

CO still OK In 2004, the Chancellor increased the corporation tax paid by small companies which pay out dividends to the shareholder/directors instead of paying salary. This caused a big fuss at the time, but when the dust settled, it was clear that such a company still paid much less tax overall than an equivalent self-employed business. So the Revenue promised to "keep the issue under review" - which seemed a strong hint that there would be further changes in the 2005 Budget. In the event, there was nothing - the so-called 'non-corporate distribution rate' rules were completely unchanged. Maybe there was too much else going on, or maybe just before an election was not the time for an increase. This means that anyone who has incorporated for the tax advantages should still enjoy them until March 2006 at least. After that, who knows? The government issued a consultation document about this last December, and some indication of the way they intend to go may follow later this year. We will keep you informed.