Coming in the next release…
The new tax year is fast approaching and we’re here to help you understand your potential personal dividend tax liabilities for the 2016/2017 tax year and beyond.
The dividend changes themselves have been outlined here before. You’ll also have received communication from your personal client account recently, outlining the approach to putting your salary and dividend target for 2016/17 in place.
To manage these changes in the Boox app, we’ve introduced a logic to estimate and communicate the personal liability.
As soon as yourself or one of your shareholders withdraws dividends that exceed the tax free allowance, you will be alerted in your pay breakdown. This means you’ll have to start setting aside funds from your personal account to cover this liability.
We’ll also send you an email at that stage (and again if/when the higher or additional rate thresholds are exceeded). If you click on the ‘Total’ dividend amount for the shareholder, a breakdown of the estimated liability at that stage will be shown:
There’s a link to the Salary and Dividends chart. This breaks down the dividend, salary and other income for the year and gives you simple visualisation of where the different dividend tax thresholds take effect. Hover over the dividend data (in the bar chart) to see a breakdown of the estimated liability:
This chart can also be accessed on the Home Dashboard and through Accounting > Reports > Personal Reports.
As well as showing the liability based on the current values, the chart also predicts the income for the end of the year based on what has been taken currently and the remaining pay periods in the year.
The grey bar at the end of the chart represents the forecasted year-end dividend total. Again, you can hover over this to see an estimate of the tax liability at the year-end based on the prediction.
Remember, this dividend tax is a personal liability and therefore funds should be set aside from your personal account(s) to cover this liability, not from the business.
View our latest blogs
Take a look at our recent blogs below.
Businesses urged to apply for remaining COVID-19 support grants
Businesses are being encouraged to apply for remaining coronavirus (COVID-19) grant funding from local authorities. Hospitality, leisure and accommodation businesses can still apply for one-off cash grants of up to […]
Published on 18th February 2022
Our specialist accounting packages for sole traders and the self-employed combine easy online tools with accountant support to take away the stress of handling your accounts.
From £25 + VAT / month
Thousands of owner-managed businesses turn to Boox for the right help and advice with running their limited company. They love our personal service and accounting market-leading software.
Pay for what you need
A range of cost-effective accounting services designed for buy-to-let landlords and property investors. Specialist advice and marketing leading software takes the complexity and stress out of managing a property investment business.
From £40 + VAT / month