There has been a lot of news recently, about National Insurance going up for the self employed, with many crying out and the government back-tracking.
However, the extra dividend tax should cause an even larger out-cry, as it is a 7.5% tax rise, not just 1 percent like the extra national insurance.
I’ve just advised some clients on their higher tax bills. For someone taking £100k income each year (small salary, large dividend), their personal tax bills are now £7k higher than they were in previous years. To make matters worse, the January 2018 payment on account is very steep, as not only is there the extra £7k to find, but also another £3.5k on top, to make the first increased payment on account.
If the above affects you, and you would like to know what your projected tax payments on account in January and July 2018 will be, talk to us: Numerica accountants in Guildford.