Had to pay more tax than you thought?
The Accounts are in and after celebrating or commiserating on the year just finished you must now decide how to extract the rewards for all of your efforts.
If, like so many, you have or are about to take a dividend then you will join the many thousands of Directors who have recently joined the self assessment club.
Way back in April 2016 the Government introduced a revised tax system – there’s that word again – which has resulted in a tax charge on any dividend over £5,000. Above this figure tax is applied at the rate of 7.5%; however it gets worse. Above £27,000 the rate is 32.5%, and higher again when we take more than £150,000. Remembering that corporation tax at 19% must be paid to take a dividend then it must be clear that this strategy is no longer a cost effective method of extracting our profits.
There are a number of alternative options available. You owe it to yourself to learn more.
Get in touch today and we can find a solution that works for you.