Shareholders of family companies should consider the timings of dividend payments to ensure maximium tax-efficiency especially those who anticipate paying tax next year at the new top rate of 42.5%.

Where company reserves allow, individuals facing this position might want to consider taking dividends before 5 April thereby paying tax at 32.5% gross. The reverse advice would apply to those facing falling revenues, as deferring a dividend until after 5 April could reduce or even eradicate their tax liability.

HMRC will be looking hard at large payments in early April so timing is crucial. Call Busby NOW on 01344 620495 or email your Enquiry