[BNM] Save a bit of tax...

[Tom Nixon]

Dunno for sure, but I trust the tax specialist at our accountants so I
expect it's right.

T.


On 4/12/06 3:17 pm, "Alan Newman" <alan at sensibledevelopment.com> wrote:

> Hi,
> 
> Thanks for that Tom - but aren't any announced changes on due to begin from
> the beginning of the next tax year?
> 
> Obviously I am not an accountant...so I haven't a clue...
> 
> ;-)
> 
> - Alan
> 
> 
> -----Original Message-----
> From: Tom Nixon [mailto:tom at nixonmcinnes.co.uk]
> Sent: 04 December 2006 15:14
> To: Bnm List
> Subject: [BNM] Save a bit of tax...
> 
> This is for those of you who are company directors using the small salary
> and dividends method....
> 
> URGENT ACTION TO TAKE BEFORE GORDON BROWN MAKES TAX CHANGES ON WEDNESDAY 6TH
> DECEMBER 2006 
> 
> A possible extra tax on dividends for owner-managed businesses
> 
> Most owner managers of small businesses take their money out through a small
> salary, paying no national insurance, topped up with dividends. This saves a
> lot of national insurance and tax.
> 
> There is a prediction that Gordon Brown is looking at imposing a top up tax
> on dividends from when he makes his pre Budget speech next Wednesday
> afternoon, 6th December.
> 
> If this top up tax was equivalent to the national insurance that is saved
> through paying dividends rather than salaries it could be 13% to 24%. So on
> a dividend of £30,000 it could be between £3,900 and £7,200!
> 
> Obviously we don¹t know what he will do, however it may be prudent to pay
> any dividends that you were planning to make up to 5th April 07 before 6th
> December 06. Taking this action will not affect your annual tax bill, but it
> just may save you an extra top up tax.
> 
> If you have any questions please email our tax consultant Margaret Handley.
> This is a further example of how Finance Directors provides valuable
> information to clients.
> 
> Anthony Lamb
> 4th December 06 
> 
> 
> FINANCE DIRECTORS LTD
> Telephone: 01444 441236
> Email: anthony.lamb at financedirectors.com
> Web: www.financedirectors.com
>