We’d like to introduce you to our brand new Dividend Tax Calculator. We’ve created this so you can easily work out what your dividend and tax obligations are for the current tax year, and compare them to next year’s. Calculating your dividend and tax obligations can be a pain. As you’re probably already aware, the way Dividend Tax is calculated will be changing this April. We’ve released a new feature to help you adjust to this change. Maximising take home pay is one of the key reasons why freelancers and contractors decide to operate through a limited company. This is done by taking a lower wage and topping it up with dividends. Dividends are exempt from National Insurance contributions, making this a more tax efficient way of getting paid. However, dependent on your circumstances, you still have to pay some tax on dividend payments. You can use the Dividend Tax calculator to see the impact of the new dividend tax changes and find out what tax you'll owe and the income you'll get from your business year. If you need more information on how the Dividend Tax Changes might impact your business, check out this blog post, or contact us for a chat.
Chancellor George Osborne is considering a fresh rise in the personal tax allowance in his Budget speech later this month, according to a report. The Sunday Times has said Mr Osborne is thinking of raising the allowance to £11,000, which would take effect from the start of April and would mean the coalition would have raised the figure at which income tax starts to be charged by £1,000 more than agreed between the Conservatives and Liberal Democrats at the start of the parliament. (more…)