Should we be paying out dividends before the Autumn Statement?

[jamesbrown]

The dividend tax change isn't even in a Finance Bill yet. The draft clauses for FB 2016 are being published on December 9. It has to go through the usual parliamentary process. There is zero chance of any accelerated changes in dividend taxation, and this impacts a much wider group than simply contractors. However, there's a good chance they will tweak ER, and changes of that nature are typically immediate. I suspect they will make other adjustments to ER than the ones people are fearing here, but you never know, they could do something drastic. It's going to disappear eventually.

[Fred Bloggs]

That's going to look even more attractive after next April.

[BrilloPad]

Put it in a pension instead.

[MPwannadecentincome]

Exactly, IF it changes it will probably be done immediately.

I can't see anyway that they will apply a dividend tax change part way through the year, if they did I'd give NLUK a years free accountancy fees...........

taxing of Dividend changes affect pension pots and stock market share holders too, I don't think an immediate change would go down very well, besides if there was an immediate change nobody would be able to update their systems quickly enough to account for it, leaving a huge mess needing corrections later.

[BolshieBastard]

Its a November Statement not a Budget Statement so I dont see anything taking immediate effect.

[northernladuk]

Exactly, IF it changes it will probably be done immediately.

I can't see anyway that they will apply a dividend tax change part way through the year, if they did I'd give NLUK a years free accountancy fees...........

I've suddenly changed my mind on all this. Come on Osborne. Stick it to 'em!!

[ContrataxLtd]

The suggestion was (and I've seen it elsewhere as well) that if ER changes, then the change would be immediate rather than waiting until the new tax year.

Exactly, IF it changes it will probably be done immediately.

I can't see anyway that they will apply a dividend tax change part way through the year, if they did I'd give NLUK a years free accountancy fees...........

[TheFaQQer]

Although contracttax did suggest ER might cease immediately or something like that. Who knows.

The suggestion was (and I've seen it elsewhere as well) that if ER changes, then the change would be immediate rather than waiting until the new tax year.

[LucidDementia]

You gave me 10 seconds to read and re-edit it. You want an award or something?

If there's one going, sure.
I just happened on it while it was gobbledygook. Don't get shirty luv.

[northernladuk]

Say what now?

You gave me 10 seconds to read and re-edit it. You want an award or something?

[LucidDementia]

Well they won't change until April so don't think there is a need to panic. That said if your warchest is big enough there is an argument you should be taking Max divis early and stuck it in an account paying some interest.

Although contracttax didnauggwst ER nigh cease immediately or something like that. Who knows.

Say what now?

[northernladuk]

Well they probably won't change until April so don't think there is a need to panic. That said if your warchest is big enough there is an argument you should be taking Max divis early and stick it in an account paying some interest. Their systems won't be ready to handle an immediate change to some of the fundamental processes like divs.

Although contracttax did suggest ER might cease immediately or something like that. Who knows.

[Lightwave]

Would it we as well to get as much cash out of MyCo now, in case any more rules change with immediate effect?
I normally take a divi towards the end of the tax year.