Tag Archives: dividends

2016/17 Tax Coding Notices – a shock for some but 2017/18 could be worse

“Tax does not have to be taxing” so says HMRC, but the mantra should be, “be afraid very afraid”, when it comes to reviewing the P2 2016/17 coding notices currently being distributed. With all the new changes to tax free interest and dividends be sure to check any adjustments to your code for these. The assumption HMRC uses is based on the 2014/15 self-assessment returns and may be substantially incorrect for the coming year. Even more issues are foreseen with 2015/16 self-assessment returns, where potentially increased dividends are paid out before 5th April 2016 before the £5k allowance takes effect. This is especially relevant to business owners, directors and senior managers who may face negative tax codes in 2016/17 and 2017/18.

Are you a business owner who uses dividends as a means of extracting income from their company? The planning of dividends, salary remuneration and pensions in the period up to 5th April 2016 and the impact for the next two years, is a critical part of business planning.

If your business needs objective guidance on this aspect, requires a strategic review or has a project that requires resource to implement, contact Martin Walby at MW Interim Finance for a confidential discussion on +44 (0) 7876 566875 or email martin.walby@mwinterimfinance.co.uk


Dividends – how long can high dividend yield companies keep paying shareholders? Interest and savings rates remain low but the number of companies offering reasonable dividend payments is reducing. Retail Sales – December 2009 marked an eight year high in retail sales but has been quickly followed up by the worst January figures in fifteen years.

The inclement weather and VAT rise may have had some impact on the reduction, but it is clear that consumer uncertainty about the state of the economy and the cost of food & ultilities are influencing spending patterns.