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With their basket of tax rises, Boris Johnson and his Treasury group have shown they haven’t a clue about the risks involved in operating a company or, sadly, operating a nation. To compensate for the iniquity that national insurance rises will hit primarily the young, Johnson has come up with a wheeze to hit these the Government thinks wealthy – so-known as filthy rich shareholders. Let’s leave aside regardless of whether the Conservative celebration is correct to break its manifesto tax promise, and look alternatively at whether raising dividend taxes is the most effective method when Britain has just suffered one particular of the worst financial crises in our history. But what this rise will do is hurt some of our most entrepreneurial spirits: the enterprise directors, the self-employed and other risk-takers who make the UK’s wealth. Investors and the self-employed will now spend £600million more in tax a year as a result of this dividend hike.
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