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The basic rate (BR) of tax remains at 20% for 2017/18, higher rate (HR) a 40% and the additional rate (AR) is 45%. Basic rate applies to the first £33,500 of taxable income, higher rate applies to the next £116.500 Everything over £150,000 is then taxed at 45% (AR) BR can be increased by your charitable
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Sole Trader v Incorporation With the advent of changes in the way dividends are taxed, the big questions is, “Is it worthwhile to incorporate or should I stay self employed?” For the tax year 2016/17 savings can be made on tax as soon as profits go above £6425 (see below). However taking into consideration extra accounts
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With the changes that came into effect from April 2016, it is time to consider the benefits / costs of being an incorporated entity. Key Points 1. There will be no distinction between net and gross sums. What you receive is what you will be taxed on. 2. Dividend income will be added to non-dividend income in
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The end of tax motivated incorporation? The Summer Budget 2015 contained some key measures that were a thinly veiled attack on small business owners. What do you need to be aware of? Dividends. Perhaps the most controversial announcement was the overhaul of tax on dividends. From April 2016 the notional credit system (which sees basic