Reduction of Dividend Allowance?

masonic

Economic wrote: »

That is politics! There was an economic rationale for the increase in the NIC, but there is no economic rationale for the reduction in the dividend allowance as it causes the profits of firms to be taxed twice.

The way things are headed, corporation tax could disappear altogether. I suppose this change gives them some wiggle-room to offer further incentives to businesses to remain here.

talexuser

And we can look forward to some other tax increase in the Autumn budget to compensate apparently.

angelfire

Can anyone tell me whether dividends paid in April 2018, this month, but RELATE to company profits for the 17/18 financial year will fall foul of this change? Or is is simply that as it is going to be paid this month, regardless of the year it relates to, there’s still a £2k threshold?

Tom99

!!!!!!!!! wrote: »

Can anyone tell me whether dividends paid in April 2018, this month, but RELATE to company profits for the 17/18 financial year will fall foul of this change? Or is is simply that as it is going to be paid this month, regardless of the year it relates to, there’s still a £2k threshold?

Divs paid on or after 6th April 2018 will count towards your £2,000 2018/19 allowance

angelfire

Tom99 wrote: »

Divs paid on or after 6th April 2018 will count towards your £2,000 2018/19 allowance

I figured as much! Thank you for your reply!

Mosler

Do small amounts of dividend tax need to be declared, such as £20, if the person isn't required to complete a self assessment form? Or is this automatically taken?

polymaff

Mosler wrote: »

Do small amounts of dividend tax need to be declared, such as £20, if the person isn't required to complete a self assessment form? Or is this automatically taken?

https://www.gov.uk/tax-on-dividends