Dividends beyond £5k taxed wef 2016!!

[DimPrawn]

Is that £5K a month limit or PA?

[TechJinx]

Is that £5K a month limit or PA?

Its per month - same as the £11000 without paying any tax and £43k higher rate.

You won't pay any tax unless you earn over £132,000 a year......

[tarbera]

Could be worse, if you can keep your combined divi and salary payments below the Higher rate (£42,385 atm) threshold then yes you will pay more, but it's not catastrophic. 7.5% rather than 32.5%.

What it will lead to is more income shifting with partners taking divi's up to the limit as well as this will still be the best way to minimise tax due.

NI allowance is going up to £3000 as well, so there may be some room for mitigation based on that.

And live in poverty ?

Wait I will get a council house and a small car !!!

What about normal contractors that take £100k divs

[SpontaneousOrder]

NI allowance is going up to £3000 as well, so there may be some room for mitigation based on that.

I think for most of us it's being removed entirely.

[Unix]

Its per month - same as the £11000 without paying any tax and £43k higher rate.

You won't pay any tax unless you earn over £132,000 a year......

Source? I doubt it when every other limit is stated in annual figures.

[DaveB]

Its per month - same as the £11000 without paying any tax and £43k higher rate.

You won't pay any tax unless you earn over £132,000 a year......

No, it's per year, like all the other tax allowances.

[TechJinx]

Source? I doubt it when every other limit is stated in annual figures.

No, it's per year, like all the other tax allowances.

clearly I need a sarcasm smiley - however I thought it was evident from the obvious stupidity of the statement.

yes of course its annual

[tractor]

...

And live in poverty ?

Wait I will get a council house and a small car !!!

What about normal contractors that take £100k divs

A couple of points of order....


You would never in a million years fit into a small car.

There is no such thing as a normal contractor.

[Unix]

clearly I need the sarcasm smiley - however I thought it was evident from the obvious stupidity of the statement.

yes of course its annual

https://en.wikipedia.org/wiki/Poe's_law

[TechJinx]

https://en.wikipedia.org/wiki/Poe's_law

I had to look at the link as I thought that was the one where every forum post depends until someone compares someone else to Hitler