The new changes to the taxation regime of dividends which will be effective from April 2016 has brought about a lot of confusion particularly for SME business owners, to say the least.
The main changes are as follows:
New Allowance: First £5,000 tax free
New Tax Regime: Over £5,000 are to be taxed at different rates (basic -7.5%; higher 25% and additional rates)
Increased Personal Allowance: £10,000.00
There are a few tools online that can assist you with working out your liability in thisregard offering a detailed snapshot of your taxable investments as well as possible offsets and tax relief.
The Telegraph has developed an online calculator. Formulated with accountancy firm Smith & Williamson, Telegraph’s money calculator is a very useful tool that lets one compute this quickly and easily.
Follow this link to use the Telegraph’s online calculator: http://www.telegraph.co.uk/money/consumer-affairs/tax-calculator-will-you-be-better-off-under-the-new-changes/