Calculation of Tax with Dividends

[jonnieboy]

My accountants have suggested taking out a larger dividend for yr 2015/16 than the £32k, and a lower one in yr 2016/17 as a way of reducing the overall tax liability over those 2 financial years, as a result of the new dividend tax.

Bit late for that now, isn't it?

[missinggreenfields]

Bit late for that now, isn't it?

Take the dividend now, then buy a Delorean to take to Twin Pines Mall at 1:21 am?

[kaiser78]

Bit late for that now, isn't it?

Good spot - corrected below;

My accountants had suggested taking out a larger dividend for yr 2015/16 than the £32k, and a lower one in yr 2016/17 as a way of reducing the overall tax liability over those 2 financial years, as a result of the new dividend tax.

[CloudWalker]

take the dividend now, then buy a delorean to take to twin pines mall at 1:21 am?

"great scott"

[dingdong]

Bit late for that now, isn't it?

I imagine quite a few contractors are still playing with the optimal level of their dividends for the previous tax year if their company tax year hasn't yet closed and they haven't yet filed their self-assessment return for 2015/16 (particularly if they have only just realised the horror of the new tax rates this year!).

[craigy1874]

Well I hope they aren't clients of mine then!

[Contreras]

I imagine quite a few contractors are still playing with the optimal level of their dividends for the previous tax year if their company tax year hasn't yet closed and they haven't yet filed their self-assessment return for 2015/16 (particularly if they have only just realised the horror of the new tax rates this year!).

Neither of the two other contractors on my site had heard of the new divvy tax.

The particularly clueless one had even just done a 'yearly review' with his BigCo contractor accountant and either hadn't listened or it wasn't explained to him.

My guess is that for quite a few the realisation (read: mini tax bombshell that hasn't been saved for) isn't going to hit home until January 2018, that being the SAR deadline for the current tax year.

[SueEllen]

Neither of the two other contractors on my site had heard of the new divvy tax.

The particularly clueless one had even just done a 'yearly review' with his BigCo contractor accountant and either hadn't listened or it wasn't explained to him.

My guess is that for quite a few the realisation (read: mini tax bombshell that hasn't been saved for) isn't going to hit home until January 2018, that being the SAR deadline for the current tax year.

Haven't listened.