Personal Allowance increased by £600

[chris79]

Just subscribe your non working wife/partner and make her prosper from your companies success! It's the way forward.

[MrRobin]

Originally Posted by chris79

Just subscribe your non working wife/partner and make her prosper from your companies success! It's the way forward.

Partner works.

[Lewis]

Originally Posted by dude69

No. Not at all.

There is no tax saving from the higher PA. Because dividends are not taxed in the first place and NI @ 11% still applies (of course if you have savings income of £600+, then this will indeed be a £120 tax cut).

I mean for people with a let's say a £10K salary. They will gain the £120 from the PA and lose £135 from the Higher Rate threshold = £15 worse off. To be honest, I don't meet may contractors anymore who just pay themselves the PA, it used to be the norm now it seems £10K is more common.