Guide: Dividend Changes

Do you take dividends out of your business? If so, you will need to know about the change in legislation happening this year.

From April 2016 the Dividend Tax Credit will be replaced by a new tax-free Dividend allowance.

With the corporation tax rate continuing to fall, the Government is keen to prevent businesses incorporating in order to achieve tax efficiencies that are not available to sole traders or partnerships.

The UK Government claim that this will be a simpler system, and that only those who have a significant income from dividends will pay more tax.

However, we believe if you have any income from dividends, it is good business sense to be aware of how the changes may affect you or your business.

This change in legislation is going to affect the thousands of small business owners that pay themselves through a combination of salary and dividends.

Download this guide to dividend changes from KPMG Small Business Accounting.