Chancellor of the Exchequer, Rt Hon George Osborne MP has today announced to tax all dividends over £5,000 at the rate of 7.5% for basic rate tax payers, 32.5% for higher rate earners and 38.1% for those in the additional tax band. This will impact hard on Contractors operating low salary high dividend extraction strategies.
We will be contacting you to discuss how we can mitigate the impact of these changes, they come into effect from April 2016, we have options around profit extraction which will reduce or in some cases totally eliminate these new unanticipated tax rates.
