placeholder

Tax on Dividends 2018/19

Tax on Dividends 2018/19

[stm_post_details]

What are dividends?

When you own shares in a company, and that company makes a profit, the profit may be distributed between shareholders. These are called dividends. Dividends must be paid out after all expenses, liabilities and outstanding company tax.

What is the dividend allowance?

Dividends are taxed after taking into account your other income sources that you may have, so this could include employment or property income. In previous tax years the allowance for tax free dividends was higher but for the tax year 2018/19 the allowance has been reduced.

  • 2016/17 = £5,000 dividend allowance
  • 2017/18 = £5,000 dividend allowance
  • 2018/19 = £2,000 dividend allowance

How are dividends taxed?

With the personal allowance now at £11,850 per year, the tax on dividends has now increased as the allowance has reduced from £5,000 to £2,000. Below shows the tax charge on dividends over £2,000 based on other income.

  • Personal allowance up to £11,850
    £2,000 tax free dividends

 

  • Basic rate from £11,850 – £46,350
    Dividends will be taxed at 7.50%
  • Higher rate from £46,350 – £150,000
    Dividends will be taxed at 32.50%

 

  • Additional rate more than £150,000
    Dividends will be taxed at 38.10%
[stm_post_bottom]
[stm_sidebar sidebar=”311″]

Looking for a First-Class Business Plan Consultant?

placeholder

coming soon

coming soon

[stm_post_details]

The new wordpress theme called Consulting WP has been lauded by critics for its presentation. The theme is made by Style Mix Themes, who have been key players in the theme industry for a long time. People were excited to see what they would come up with next; their specialty has always been designing industry specific themes. This time they have focused on the consultation industry and have hit a home run.

There are many great things within the theme which are the cause of its popularity. The biggest factor is the appearance of the theme; it disrupts theme design clichés without being unprofessional. The different possible color combinations are also being appreciated by many companies. The theme continues to rise in popularity and many other companies have expressed an interest in deploying it on their new websites. The creators of the theme are happy with the response and have vowed to create further themes exploring the same concepts

  • Growth through innovation/creativity:
    Rather than be constrained by ideas for new products, services and new markets coming from just a few people, a Thinking Corporation can tap into the employees.
  • Increased profits:
    The corporation will experience an increase in profits due to savings in operating costs as well as sales from new products, services and ventures.
  • Higher business values:
    The link between profits and business value means that the moment a corporation creates a new sustainable level of profit, the business value is adjusted accordingly.
  • Lower staff turnover:
    This, combined with the culture that must exist for innovation and creativity to flourish, means that new employees will be attracted to the organization.
[stm_post_bottom][stm_post_about_author][stm_post_comments]
[stm_sidebar sidebar=”527″]

Looking for a First-Class Business Plan Consultant?