Did you catch the budget last week? I will have more to say on that at a later date. Today I am looking at an outcome from a previous budget, there is an opportunity to save up to £2000 in tax if you act quickly.
Tax on Company Dividends.
Back in 2015, the Chancellor and the dragons at HMRC decided that the way dividends were taxed was “arcane” and “complex”. It was designed at a time when Corporation Tax was far higher. They also believed that many people had created limited companies simply to save tax, the dreaded TMIs ie ‘tax motivated incorporation’.
Of course, they were right.
So from April 6th, 2016 payments of dividends from companies will be subject to a new tax regime which inevitably means that you will be paying more tax. The changes to the taxation of dividends will have a major impact on the shareholder / directors of all small companies. If you have been using a small salary and dividend profit extraction strategy, you are going to be paying much more tax, guaranteed!
But before the axe falls at midnight on 5 April there is one last chance to cash in under the old tax rules. In this week’s Sound Bite I outline what you can do and why. If this looks a bit complex, remember we are here to help and so if you need any assistance just get in touch. And don’t worry if you don’t have the cash just now, there is another way, so listen to this week’s Sound Bite.
There is the potential to save up to £2000 in tax. Video below.
Remember, time is running out and you could save £2000 in tax.
I do urge you to take action in today’s sound bite. As ever, any thoughts or questions, please get in touch.
Call us on 0800 180 4401 or email firstname.lastname@example.org
In next week’s sound bite I will be looking at planning and scheming. I have just come back from the CIOT Spring Tax Conference with loads of information for you and ideas and tips to help you save tax.
Slaying your tax dragons and making life less taxing!
The Long Partnership
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