Corporate Tax

Buy to let tax changed

From April 2017 the way higher rate tax payers are taxed on their rental properties will change. Instead of receiving tax relief on your mortgage interest at your prevailing tax rate you will now receive a flat 20% credit against your profit. This will lead to an increase in tax for all higher rate BTL owners. It must be noted that Limited Companies owning the BTL properties are not affected, so all new properties should be considered to be [...]

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 [...]