The dividend allowance cut, that will affect contractors across the country, will go ahead from April 2018, now that the Government’s second Finance Bill has been confirmed.
The tax free dividend allowance will be cut from £5,000 to £2,000 from April 2018, in the Chancellor’s bid to create a level playing field on taxes for employees and contractors. However, the changes could hit family businesses particularly hard, if more than one family member takes a dividend payment.
The dividend allowance cut was mooted in the Chancellor’s Spring Budget speech, with…
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