Share Split with new Dividend Tax

[WordIsBond]

They are a director so they do an SA anyway

Other income or not? If other income, higher rate or basic rate?

[jamesbrown]

They may increase the new dividend allowance to £10K to mitigate it. Or they may just give pensioners a £10K dividend allowance while keeping the rest of us at £5K. But I will be surprised if they do nothing.

I agree that it could be tweaked between now and next year, and the details are, in any case, TBC. It's a rather regressive tax, with higher rate PAYE benefiting most and small business owners with low/modest income and perhaps some pensioners being disproportionately impacted. I'd be surprised if they increased the allowance in a blanket fashion; they could mitigate the worst effects for ordinary rate taxpayers (which would include most pensioners), but this would impact on the Exchequer too, and they're looking for cash cows.

[Sausage Surprise]

They are a director so they do an SA anyway

Not a director just a shareholder, so no SA necessary.