0% Dividend tax rate being reduced in April 2018
With effect from April 2018 the government will be reducing the £5,000 tax-free dividend allowance to £2,000 per individual.
To bring the way company directors are taxed, closer to self-employed individuals, after the first £2,000 of dividend income the excess will be taxed at 7.5% for basic rate, 32.5% for higher rate, and 38.1% for additional rate. If you trade through a company then you should consider declaring dividends up to £5,000 before 5 April 2018.
Callum Somers ACCA
Growing up on a Dairy farm in East Devon, Callum joined Evolution ABS in 2010 and qualified as a Certified Chartered Accountant in 2015. Callum looks after a wide variety of clients, helping them meet their accountancy, payroll and tax needs.
Outside of work Callum is a very keen sportsman and particularly enjoys a game of golf or playing football for his local club.