Dividend changes 2016/2017

Dividend changes 2016/2017

From April 2016 HMRC are trying to close the loophole where people pay themselves dividends to try and save on PAYE and National Insurance. Now everyone has a £5,000 tax free dividend and then you are taxed an additional 7.5% thereafter up until the upper rate of tax, where you are taxed at 32.5%. This change will no doubt mean more of you pay more tax, however, it is still more tax efficient to be Limited rather than a sole trader.

Share this post