Top 7 Ways to Select a Book Topic That Sells

Written by Judy Cullins

According to a new survey carried out by Alliance & where ID_NUM=9270; Leicester, one in five small business owners view tax as their greatest concern. The Chancellor has announced in his last budget that companies with profits below œ10,000 will not have to pay any corporation tax with effect from 1 April 2002. The question to be asked is: does that announcement make incorporation a more attractive option compared to being a sole trader?

The answer is that from a tax point of view, it is advantageous to trade through a limited company as long asrepparttar income is drawn fromrepparttar 129646 company byrepparttar 129647 owners as dividends from their shares andrepparttar 129648 amount of dividends drawn is restricted belowrepparttar 129649 40% band rate (i.e. œ31,063 for tax year 2002/03). That way,repparttar 129650 owners have no further personal tax ("income tax") to pay. Moreover, dividends are not subject to national insurance contributions. This is excellent news of course. But, if dividend income falls withinrepparttar 129651 higher rate bracket of income tax (i.e. above œ34,515), they will be taxed at 22.5% onrepparttar 129652 excess, which of course will increaserepparttar 129653 tax burden. The company profits are subject to corporation tax rates. Those are lower than income tax rates.

The most catastrophic scenario is whenrepparttar 129654 director takes his reward fromrepparttar 129655 company as salary. Then his/her salary is taxed at income tax rates (like a sole trader's income). That is because, unlike sole traders,repparttar 129656 tax system treats companies as separate from their owners because a company is a separate legal entity. The problem is thatrepparttar 129657 income taxes are higher than corporation tax rates. On top of that, they will be subject to employee and employer national insurance contributions, which of course increaserepparttar 129658 tax burden and render his position worse than even an unincorporated business ("sole trader"), because NIC Class 1 on payroll are higher than NIC Class 2 paid by self employed.

In contrast, a self employed person ("sole trader") is taxed at income tax rates onrepparttar 129659 profits from his business, which are added to his other sources of income. As it has already been mentioned, income tax rates are overall higher than corporation tax rates. On top of income tax, national insurance contributions class 4 are payable onrepparttar 129660 business profits within a specified band (7% on profits between œ4,615and œ30,420). National insurance contributions Class 2 are also paid by self-employed people, although those are lower than those payable by company directors on their salaries.

To illustraterepparttar 129661 above, let's take a simple example. We have a limited company and a sole trader. They both make œ60,000 profits each inrepparttar 129662 tax year 2002/03. We assume thatrepparttar 129663 company director takes a salary equal torepparttar 129664 amount of his personal allowances (untaxed income) of œ4,615 andrepparttar 129665 balance as dividends. The company will pay corporation tax at 19% equal to œ10,523 and nothing else. The sole trader will pay income tax œ16,542, National insurance Class 2 œ104 and National insurance Class 4 œ1,806. Total œ18,452. The bottom line is thatrepparttar 129666 person that has incorporated his business into a limited company will make a tax saving of œ7,929 compared to a sole trader! Isn't that fantastic?

Somebody might be wondering: why is this entire happening? The official explanation is that, this government, to helprepparttar 129667 economy grow, encourages people to leave as much profits within their businesses to be reinvested, instead of being taken out and spent.

The "unofficial line" is that, as a matter of fact, for yearsrepparttar 129668 Inland Revenue has tried to reclassifyrepparttar 129669 self-employed. The 1% in NIC hike on staff salaries aboverepparttar 129670 NIC threshold from next April adds to bothrepparttar 129671 employees' and employers' tax burden and may more than offsetrepparttar 129672 saving fromrepparttar 129673 corporation tax zero rate onrepparttar 129674 first œ10,000 of profits.


Written by Arleen M. Kaptur

Writing - everyone does it, but not everyone is a writer. There are those who write letters, lists, journals, and are very good at it. Then there are those that scribble notes of all kinds to themselves, but never make use of them. They loserepparttar note that told them whererepparttar 129643 note was that mentioned whererepparttar 129644 original note was and what is was all about.

Then onrepparttar 129645 other hand, you have someone who calls themselves a writer, and may have something published, but they are intorepparttar 129646 marketing part of writing much more thanrepparttar 129647 content. Their mind and heart are geared to making money inrepparttar 129648 writing world and giving publishers, e-zine owners and other media what they want to hear, not what this particular writer has to say.

Of course, we all want to make money at what we do - this is just being practical. How long could you survive if you didn't make any money and this was your only means of support?

What I am trying to say is that every true writer has a million ideas, stories, and articles in his heart and in his mind that are labeled and stamped as genuine and original. They are basically who this person is and what is important or of significant value to this writer.

When we ignore what is inside of us as writers, then we are belaboringrepparttar 129649 entire process. Sure, you might make a living, but are you making yourself a life? Are you being true to your real self, or are you being molded by today's market interests or trying to attune yourself to only what tomorrow's market will bear. People read what they feel they SHOULD read, but not really.

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