By Clare Munro, Tax Partner
According to the press, the Chancellor used the phrase ‘lower tax society’ six times in his Budget speech. Now that the dust has settled, it’s hard to see how many owner-managed companies are going to see much evidence of lower tax. In fact, our analysis indicates that the reverse is likely.
The current tax regime gives businesses incentives to operate through a company rather than as a self employed individual or partnership. Efficient extraction of profits has meant paying a small salary and taking the balance as a dividend.
The new regime, taking effect from April 2016, fundamentally changes the structure of tax on dividends.
To read about how the impact of these changes could affect your company, click here.
If you would like to talk to me about planning for the new regime, please do email me.