Are you a shareholder?
Do dividends make a significant contribution to your income?
If the answer is ‘yes’, then you need to be aware that this measure will impact you.
From April 2022 tax on dividend income will increase by 1.25% to help support the NHS and social care. How much tax you pay on dividends above the dividend allowance depends on your Income Tax band.
Tax Band & Rate
The HMRC website includes a worked example, and advice on what to do if you think your dividend income will be over £10,000. In essence, you’ll need to fill in a Self Assessment tax return
Or, of course, you can seek our advice and assistance.