A client has just sent me a copy of their 2016/17 tax code and I had my own a week or so back.
Within the tax code for next year is a deduction for dividend tax. Presumably this is because the dividends will become taxable from April however I foresee this causing a few issues in that it assumes the dividends for next year will be the same as this year.
Also this will mean that one man bands who currently have no tax liabilities under a low salary scheme who pay tax through their self assessment at the end of the year will now have to pay tax on a monthly basis.
Has anyone else received a tax coding notice like this and had any success in having it changed so the tax is paid as part of self assessment and not PAYE?