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.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
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.