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Divs next year

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    Divs next year

    "The much-disliked plan at Budget 2017 to cut contractors’ tax-free dividend allowance by £3,000 has been officially re-tabled by the government. But unlike last week’s re-tabling of Making Tax Digital, where a delay has been put in place, the cut in the allowance will go ahead from April 2018, as planned".

    It's back on then...
    Clarity is everything

    #2
    .. do the Hokey Cokey and turn around, that's what it's all about....
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      What does this mean in reality? An extra £225 a year assuming staying in the lower rate?

      Comment


        #4
        Originally posted by le3ky View Post
        What does this mean in reality? An extra £225 a year assuming staying in the lower rate?
        Yep or £450 if you share dividends with the wife...
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by eek View Post
          Yep or £450 if you share dividends with the wife...
          Share them? Surely she's bought her own?
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            Share them? Surely she's bought her own?
            Well yes but I didn't want to make the assumption that other people have their wife as a shareholder
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by le3ky View Post
              What does this mean in reality? An extra £225 a year assuming staying in the lower rate?
              Surely if you want to take the same as last year it means 3k more into the higher rate. So £975 more tax?

              And if you take 3k less than last year £0 more tax?

              Comment


                #8
                My assumptions are for a contractor currently taking up to the current max within the lower rate (£45k)

                Comment


                  #9
                  Originally posted by sketchandsunshine View Post
                  Surely if you want to take the same as last year it means 3k more into the higher rate. So £975 more tax?

                  And if you take 3k less than last year £0 more tax?
                  So if last year i took £45k = £3000 tax
                  This year I take £45k = £3225

                  So if I take the same dividends I pay £225 more in tax..?

                  Comment


                    #10
                    Originally posted by eek View Post
                    Well yes but I didn't want to make the assumption that other people have their wife as a shareholder
                    Or a secretary.

                    Comment

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