With the self-assessment deadline now passed, it’s time to start planning ahead for the end of the 2015-16 tax year.
If your income has not yet hit the higher rate tax threshold, and you don’t expect it to, it may be worth thinking about declaring dividends from your company to take you to that threshold.
By declaring dividends before April, you may benefit from using up all of your allowances which may otherwise be wasted.
You may also benefit from declaring dividends before the new Dividend tax is introduced in April.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
Holmes Accountancy are Xero Certified Advisors