Increase in Dividend taxation rate
With effect from April 2016 there will be an additional 7.5% tax on dividends over £5,000 in each tax year for a basic rate tax payer and an additional 10% if you are a 40% tax payer.
What does this mean for Small Businesses?
Unfortunately, this represents a major increase in taxation of small business owners if you have chosen to trade as a limited company. On the whole it will not be worth dis-incorporating but you will be paying more tax.
Please speak to us about limiting the effect of this change.
Surprisingly this has gone relatively unnoticed whereas there was a huge media furore with a minor change to the rules on hot pasties.
For more information on the budget changes and how they affect you individually please call us on 01487 825656