Lesley Stalker, tax partner at RJP, shares her advice on what entrepreneurs and company directors can do to mitigate the impact of the dividend tax increase, which comes into effect on 6 April 2016.
The new £5,000 dividend allowance will add considerable complexity to the personal tax regime. For almost everyone who receives dividend income – company directors and equity investors in particular - it will mean higher taxes in the future. Those affected may want to reconsider how their personal income is structured to mitigate the effects, according to Stalker.
In the podcast, Stalker talks about the impact of the changes to the way dividends are taxed and the main things directors can do about it including:
- Drawing a larger dividend before 6 April
- Changing the specification of company premises
- Operating as a sole trader or partnership