Slight deviation today but necessary following the last few days meetings.
I believe business owners in the small to medium sized category are the most hard pressed of all. Aside from a taxing regime more pernicious than at any time since 1978, owners face constant stress over cashflow, bank pressure, GDPR, HR and just trying to earn enough to put food on the table. Though Blockchain technology will solve many problems it may not solve them all in the short term.
I want to focus on one issue today; Directors traditionally draw dividends to supplement salaries. Such a strategy was reasonably effective up until 2 years ago, at that point the Government's changes to dividend taxation began to bite. Any Director still drawing more than £5,000 in dividends [last year] will know all about the bite which bit in January and July last.
Our accountants have known about this tax change since 2015 but it appears few have discussed this with their clients. Few have introduced any kind of alternative.
If you own a business, a Company, and are still taking dividends over £2,000 [since April] but desire to keep more of what you make, then you need to know about a simple alternative to dividend; one which creates a tax saving as opposed to a tax charge. One that might just make the difference to your life and lifestyle.
You know what to do.