Dividend Tax is changing from April 2016 so now is the time to plan if proposing additional dividends in March 2016 could save you money.

From April, dividend tax credits will be abolished and a new taxation method brought in starting at 7.5% on all dividends over £5,000. Currently basic rate tax payers have no additional tax to pay on dividends received.

For higher rate tax payers the effective rate will rise from 25% to 32.5%. For additional rate tax payers the effective rate rises from 30.6% to 38.1%.

This means that in most cases there will be a rise in personal tax for contractors drawing dividends through a limited company and tax. 

A government sponsored review, carried out by high profile entrepreneur Julie Deane, has concluded that self-employed workers should receive more support when it comes to maternity pay and support with adoption. 

A new regulation that requires companies to create a ‘Register of People with Significant Control’ (PSC register) comes into force on 6 April 2016.

The changes should not be too strenuous for companies, but it is important that they are aware and fulfil their obligations in line with the new rules.

What is a PSC register?

The PSC register forms part of the reform to UK company law that was introduced in the Small Business, Enterprise and Employment Act 2015.  

Did you, like many others, have to run the mad dash to get your tax return finished over the weekend?

HMRC estimates that around six per cent of tax returns are filed on the 31 January deadline day each year. For those leaving it to the last minute, HMRC’s online filing system can be slower than normal and the automatic £100 penalty for late filing is a constant threat. 

How can you avoid this deadline day rush in years to come? Here are our top five tips for a stress-free 2016-17 tax year.