Fundamental Changes to the Taxation of Dividends - 6th April 2016

As part of his Summer Budget speech, the Chancellor announced fundamental changes to the way in which dividends are taxed for individuals.  

We have reviewed the detail of the measures, which are due to take effect from 6 April 2016.  Consequently we would advise that that all shareholders of companies which yield dividends should take stock of their affairs now, before this change takes place.  

The current regime

Dividend income is currently taxable at various rates:

• Basic rate taxpayers – 10%, giving an effective rate of 0% after deducting the tax credit;
• Higher rate taxpayers – 32.5% (an effective rate of 25% on the net dividend);
• Top rate taxpayers – 37.5% (an effective rate of 30.6% on the net dividend).

eNews - February 2016

Welcome to the February 2016 edition of ‘Hillmans Tax Tips & News’, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!                          

February 2016 Contents

· Stamp Duty Land Tax (SDLT) on additional properties

· HMRC prepare for National Living Wage (NLW)

· Simplification of VAT MOSS for small businesses

· Could EA exemption be avoided?

· February Questions and Answers

· February Key Tax Dates