Dividends

7
Jun

Diary of Main Tax Events – March / April 2018

  Tax diary: All the main tax events for March / April 2018 Welcome to this month’s Tax Diary, providing you with all the main tax events for the next couple of months including key deadlines and what’s likely to be due. These deadlines are intended to be used as a guideline and are based on the general requirements of

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11
Apr

Tax efficient salary and dividends for 2018/19

How to extract profit from companies in a tax efficient manner for 2018/19 The new tax year means that many directors of companies will be considering the most tax efficient method of paying themselves. For many years accountants and tax advisors have suggested that director/shareholders should extract profit by paying themselves a low salary with the remainder of their income being

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10
Oct

Taxing dividends in January

  The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers there will be more tax to pay on those dividends on 31 January 2018. Up until 5 April 2016, the 10% dividend credit meant that basic

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5
Jun

HMRC computer isn’t always correct

  HM Revenue and Customs have acknowledged that their software and some commercial software used by accountants doesn’t always come up with the right amount of tax payable! You may have seen this reported in some newspapers such as the Daily Telegraph. This arises because the tax system of different income tax personal allowances, dividend allowances, savings rates has become

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5
May

New tax free allowances started on 6 April

  The £5,000 dividend and savings allowance of up to £1,000 have been with us since 6 April 2016. There are now two further allowances available since 6 April 2017. There are concerns that these have not been widely publicised and not properly understood. The first £1,000 allowance is against self-employed income. This is a deduction from gross income so

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5
May

Better to pay interest on your loan account than dividends if higher rate taxpayer

  Ever since the introduction of the 7.5% increase in the rate of tax on dividends in April 2016, it has been more tax efficient for owner managed business shareholders to pay interest on their loans to the company rather than pay themselves dividends. The interest would be deductible against the company’s profits saving corporation tax at 19% (was 20%),

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5
May

Should we give shares to children and pay £5,000 dividends tax free?

  The introduction of the £5,000 tax free dividend allowance has tempted many family company shareholders to give shares to other family members so that they can be paid £5,000 a year tax free. (Note that this allowance reduces to £2,000 from 6 April 2018). Such a strategy needs to be carefully structured as there can be Capital Gains Tax

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18
Mar

Tax free dividend allowance to be reduced to £2,000

  The Chancellor also announced measures to limit the rise in tax-driven incorporation. The £5,000 tax free dividend allowance introduced by George Osborne will be reduced to just £2,000 from 6 April 2018. Mr Hammond claimed that many smaller owner-managed businesses have incorporated as limited companies mainly for tax reasons. Typically the director/shareholders of such businesses have paid themselves in

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22
Mar

£150m tax hike to hit London economy from April

600,000 businesses to lose out Owner managed businesses in the capital are urged to take action to reduce the impact of the changes to dividend tax relief which will hit 600,000 London businesses from 6 April, according to Robinsons, one of the leading SME accounting firms in London. Under the new tax regime business owners could face a personal tax

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18
Mar

Budget 2016 – key points

Some 600,000 small business to be taken out of business rates. George Osborne has announced that some 600,000 small businesses will be taken out of business rates from next year. Also approximately 250,000 firms will pay less in business rates  under the plans announced in the budget. In the Budget it was confirmed that  Small Business Rate Relief (SBRR) would be

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