What will be your business structure?

With major changes being made to the taxation of dividends in the 2015 summer budget perhaps it is time for you to consider how you will continue to operate your business, as a Limited company or perhaps as a Partnership or Sole Trader?
You can no longer gross up dividends and offset the notional credit, now the first £5000 is tax free, thereafter tax is paid at an increased level making it less tax efficient and pushing up the break even point for tax.
One bit of good news for small limited companies is the reduction in Corporation tax to 19% in 2017 with a further reduction to 18% by 2020.
Your decision needs a lot of consideration and involves such factors as the need for profit extraction and your turnover figures, but in all cases professional advice must be sought.

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