SME OWNERS PLAN TO PAY THEMSELVES DIVIDEND AHEAD OF TAX HIKES
February 23 2016.



More than a quarter (28%) of SME owners are planning to pay themselves a special dividend ahead of forthcoming tax hikes in April, according to a survey of owner-managed businesses.


Accountancy firm Moore Stephens says that this rush of dividend payments is necessary for business owners to avoid a sharp jump in their personal tax bills next year.

For higher rate taxpayers the tax rate on dividends increases from 25% to 32.5% and additional-rate taxpayers will increase from 30.56% to 38.10%, a dividend tax hike of some 7% for all middle and high rank earners.

Mike Cooper, partner at Moore Stephens, says that small business owners are moving quickly to take out money from their businesses at a lower tax rate.

“Providing the accumulated profits are there...

To read the full story at growthbusiness.co.uk CLICK HERE