With the changes due to take place next month in the taxation of dividends, owner/directors will need to make adjustments to profit extraction strategies. Meanwhile is anyone recommending that they take out as much as they can afford this month, provided the sums are available within distributable reserves ?
Replies (15)
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I think it's safe to assume that the answer to your question is
Yes
I think it's also safe to assume that anyone so advising, without checking the numbers, is at risk of giving very poor advice.
Look at your clients as individuals
I have just been through all of my company clients, and have made personal contact with all of them explaining the options open to them about dividends. You cannot just have a blanket policy, because what one client wants, another may not want. Good old customer service means talking to clients and also helps with client retention as they like to think that they are important
No point
Yes, but on a case by case basis.
No point in paying 25% this year to save 7½% next year.
Everyone's different.
All sorts going on in my client base following dividend tax discussions over the past 4 months:
1. Some pension contributions of over £100k.
2. Some hefty dividends with £10k or more self-assessment tax to pay where "normally" a dividend to just below the 40% level would have been declared.
3. Numerous "box standard" dividends scraping out every last drop of profit from the reserves.
I predict a windfall billion or so in January 2017 thanks to dividends being hiked up now to avoid paying more later.
I am always glad when the chancellor does not put up fuel duty, because then you do not get the big queues of pillocks lining up at petrol stations to save the few quid on the one tank of fuel that they can get in before the change.
I think the same applies generally to dividends. There will be known cases where reserves have accumulated and considered action needs to be taken, otherwise you are just p*ssing at the margins.
Quite so
I am always glad when the chancellor does not put up fuel duty, because then you do not get the big queues of pillocks lining up at petrol stations to save the few quid on the one tank of fuel that they can get in before the change.
And keeping our roads safer by freezing beer duty as we don't have the same motorists driving home after filling their bellies with as much lager as they can hold in order to save a few pence before midnight.
I always look out for Portia's
"technical" phrases;- "pillocks" p*****g" to name only two!
Why can't this fine contributor run the Treasury?
Indeed - I always look out for Portia's
"technical" phrases;- "pillocks" p*****g" to name only two!
Why can't this fine contributor run the Treasury?
response. Pillocks and b*llocks have been favourites today.
Between the technical phrases, there is a huge amount of quality and experience, supported by links . . . . so please don't leave here for the Treasury.
Never a dull moment.
somewhat related
Rushing through a MVL for a cash-rich company. Otherwise this one would be caught by the removal of ER post 5.4.16.
business re-start
Why?
It's not universally the case but is the case in this instance. Business is being re-started after mass extraction of the cash from oldco.
Transactions in securities
... you think you're safe doing it now?
though "safe" is a subjective term.
Would surely apply?