Does this affect you?
In the budget it was confirmed that tax on dividend income is changing.
You may now be required to submit a Self-Assessment Tax Return even if you have not been required to do so in the past.
Starting from 6th April 2016, only the first £5,000 of dividend income in each tax year will be free from personal taxes. Dividends over £5k will be taxed at 7.5% for basic-rate taxpayers. Higher-rate taxpayers will be subject to 32.5% tax, while additional-rate taxpayers will pay 38.1% tax.
If you receive dividend(s) totalling over £5,000 from any source, you must complete a Self-Assessment Tax Return and pay any tax due. Now is the time to keep accurate records of all relevant income as this will be required when completing the Tax Return to April 2017. HMRC deem it your responsibility to submit a return if this applies to you, with penalties automatically issued if the filing deadline of 31st January 2018 is missed.
With the above in mind, there may be some tax planning opportunities you could consider, such as declaring dividends before 5th April 2016 if you are a lower-rate taxpayer.
We are here to assist you with all matters regarding a Self-Assessment Tax Return, if you wish to discuss this or need any advice, please feel free to contact the office.