Rumours of 20%/40% dividend tax in the Oct budget

MattM

I’m curious as to what others that take profit out via a dividend think of this? If this is in the budget, then I suspect that it would be more cost effective to go full PAYE but still means extracting profit at the end of the year will be very painful.

Awful news for the self employed.

Katie

Hi MattM,

Rest assured that Crunch is keeping a close eye on this and we’ll be sharing our annual rundown of the budget changes as soon as possible.

If you’ve got a paid subscription with us then you can expect to receive some updates from us with our recommendations. You can also request a call with our accountants to make sure you’re still getting the best out of your company.

All the best,
Katie

MattM

Thanks Katie.

MattM

Well, it looks like dividend tax was not touched, which is a relief.

NI starting at £5,000 is a curve ball, but as our company has two directors, am I right in assuming we qualify for employment allowance? (https://www.gov.uk/claim-employment-allowance/eligibility) and if so, is it worth raising the amount of PAYE to reduce profit (and thus corp tax)?

I know you’re all digesting the small print, so I’d expect an update on best practices in the near future?

Thanks!

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