{"id":219788,"date":"2017-05-09T21:23:52","date_gmt":"2017-05-09T20:23:52","guid":{"rendered":"https:\/\/www.pearlaccountants.com\/?p=1751"},"modified":"2017-05-09T21:23:52","modified_gmt":"2017-05-09T20:23:52","slug":"dividend-tax-quick-guide","status":"publish","type":"post","link":"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/","title":{"rendered":"Dividend Tax Quick Guide"},"content":{"rendered":"<p>The changes to the Finance Bill is of importance for small business owners and for the self-employed which aims to reduce dividend tax allowance in the coming next months. It was initially said that tax free dividend allowance would be decreased from \u00a35000 to \u00a32000 but this has been withdrawn following the announcement of the General Election on the 6 June 2017.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/#Dividend_Tax_Rates\" title=\"Dividend Tax Rates\">Dividend Tax Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/#Dividend_payments\" title=\"Dividend payments\">Dividend payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/#Paying_Dividend_Tax\" title=\"Paying Dividend Tax\">Paying Dividend Tax<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Dividend_Tax_Rates\"><\/span>Dividend Tax Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A dividend tax-free allowance of \u00a35000 per year is allowed. Depending on the Income tax band that you fall into the dividend tax that you must pay will change.<\/p>\n<p>As it stands the Dividend Tax rate which does not include Personal tax allowances for 2017\/2018 are as follows.<\/p>\n<div class=\"taxtables\">\n<table style=\"border: 1px solid grey; border-collapse: collapse; height: 111px;\" width=\"1197\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\">Dividend tax-free allowance<\/td>\n<td style=\"text-align: center;\">\u00a35000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">Basic rate (lowest rate)<\/td>\n<td style=\"text-align: center;\">7.5% on earnings up to \u00a333,500<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">Higher rate (middle rate)<\/td>\n<td style=\"text-align: center;\">32.5% on earnings up to \u00a3150,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">Additional rate (highest rate)<\/td>\n<td style=\"text-align: center;\">38.1% on earnings above \u00a3150,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Dividend_payments\"><\/span>Dividend payments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you run a limited company and you are a director of the company with shares in the company, then you may get a dividend payment.<br \/>\nAny dividend that you get form Shares ISAs are tax free.<br \/>\nPlease note that any dividends that are considered in your Personal Allowance will not count towards the tax-free dividend allowance of \u00a35000.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Paying_Dividend_Tax\"><\/span>Paying Dividend Tax<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you receive a dividend that is less than \u00a35000, then you do not need to pay any tax or inform HMRC.<br \/>\nIf you receive a dividend between \u00a35000 -\u00a310 000 then you must inform HMRC.  You must also change your tax code and include this in your self-assessment.<br \/>\nIf you receive a dividend of over \u00a310 000 then you must register for Self-assessment by 5 October of the following year that you received this income.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The changes to the Finance Bill is of importance for small business owners and for the self-employed which aims to reduce dividend tax allowance in the coming next months. It was initially said that tax free dividend allowance would be decreased from \u00a35000 to \u00a32000 but this has been withdrawn following the announcement of the <a href=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  Dividend Tax Quick Guide<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2198],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Dividend Tax - A Quick Business Guide - Pearl Accountants<\/title>\n<meta name=\"description\" content=\"Here is a quick guide to dividend tax for businesses wishing to take out dividends and the complex scenarios surrounding this.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dividend Tax - A Quick Business Guide - Pearl Accountants\" \/>\n<meta property=\"og:description\" content=\"Here is a quick guide to dividend tax for businesses wishing to take out dividends and the complex scenarios surrounding this.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pearlaccountants.com\/blogs\/dividend-tax-quick-guide\/\" \/>\n<meta property=\"og:site_name\" content=\"Pearl Chartered Accountants &amp; 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