As of the 23rd September 2022 it has been announced that the Dividend Tax rise for 21/22 will be reversed for 22/23.
National Insurance rise
It may have been easy to miss with all the hullabaloo about the National Insurance rises, but dividend tax is getting raised too.
The broad details of the 1.25% raise to Employee and Employer from April 2022 are here.
The government have not yet released exact details on how this will be implemented but this will obviously be an extra cost on employees and employers.
Dividend Tax Rise
A lot of our clients pay with a small salary and dividends. Just so they do not escape the pain there is going to be an equivalent dividend tax rise of 1.25%. Some more details here.
If you would like some advice on how to structure your salary and dividends in your limited company see here.
Or get in touch with us here.
We will post more details as we get them.