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News & Tax Advice

Tax Advice to make tax less taxing...
 

Big Brother is Watching You

HMRC has a new system called ‘Connect’ and it is fully operational now. This system accesses information from over 30 other sources such as your bank accounts, credit cards, land registry, DVLA, social media sites and many more.

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Dividend Income Overview

From 6 April 2016

  • The notional 10% tax credit on dividends is abolished.
  • A £5,000 tax-free dividend allowance is introduced (this reduces to £2,000 from 2018/19)
  • Dividends above this level are taxed at 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate)
  • Dividends received by pensions and ISAs are unaffected
  • Dividend income is treated as the top band of income.
  • Individuals who are basic rate taxpayers, who receive dividends of more than £5,001, will complete self-assessment returns from 6 April 2016.
  • The change has little impact upon Non-UK residents.

The Spring Budget 2017 announced that the dividend tax-free allowance of £5,000 would be reduced by £3,000 to just £2,000 for dividends paid on or after 6 April 2018.

 

Savings Income

From 6 April 2016, if you’re a basic rate taxpayer you’ll be able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers will be able to earn up to £500. This is called the Personal Savings Allowance.

This means:

  • most people will no longer pay tax on savings interest
  • banks and building societies will stop deducting tax from your account interest

If you already receive interest without tax being taken off, you’ll no longer need to tell your bank or building society that you qualify for tax-free interest.

How much is the personal savings allowance?

It depends on what rate of tax you pay:

  • Basic-rate (20%) taxpayers – will be able to earn £1,000 interest per year with no tax (so a max tax saving of £200 compared with before).
  • Higher-rate (40%) taxpayers – will be able to earn £500 interest per year with no tax (so a max tax saving of £200 compared with before).
  • Additional-rate (45%) taxpayers: £0 – they do not get an allowance.
Deborah Hall Tax Support Services

Deborah Hall Tax Support Services

Tax Advisor

With over a decades experience in personal taxation, whatever level of assistance you want. Deborah Hall Tax Support Services can offer one off or regular help by becoming your Agent.

Opening Times

Monday -------- 08:00-20:00
Tuesday -------- 08:00-17:00
Wednesday --- 08:00-17:00
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Sunday --------- Closed

Deborah Hall Tax Support Services

26 Arminers Close, Gosport, Hampshire, PO12 2HB
02392 007 291
07791 789 162