{"id":357,"date":"2015-08-03T00:00:00","date_gmt":"2015-08-03T00:00:00","guid":{"rendered":"http:\/\/slacc.wpengine.com\/index.php\/small-business-changes\/"},"modified":"2015-08-03T00:00:00","modified_gmt":"2015-08-03T00:00:00","slug":"small-business-changes","status":"publish","type":"post","link":"https:\/\/slacc.co.uk\/index.php\/small-business-changes\/","title":{"rendered":"Small business changes"},"content":{"rendered":"<p>\n\t&nbsp;Some of the key changes that will impact small businesses in particular are set out below:<\/p>\n<ul>\n<li>\n\t\t<strong>Taxation of dividend income from April 2016. <\/strong>The present 10% dividend tax credit is being abolished from April 2016. In its place an annual dividend tax allowance of &pound;5,000 is being introduced. Dividends received will be free of further charge to Income Tax up to this limit. Above the &pound;5,000 limit dividend income will be taxed as follows:<\/li>\n<\/ul>\n<ul>\n<li>\n\t\tBasic rate tax payers at 7.5%<\/li>\n<li>\n\t\tHigher rate (40%) tax payers at 32.5%, and<\/li>\n<li>\n\t\tAdditional rate (45%) tax payers at 38.1%<\/li>\n<\/ul>\n<p>\n\t&nbsp;Shareholder directors of small companies that pay limited salaries and high dividends may be affected by this change and should review their dividend strategy.<\/p>\n<ul>\n<li>\n\t\t<strong>National Insurance Employment Allowance. <\/strong>From April 2016 the present &pound;2,000 allowance is being increased by 50% to &pound;3,000. The Chancellor has also announced that the allowance will be withdrawn for one person shareholder\/employee companies.<\/li>\n<\/ul>\n<ul>\n<li>\n\t\t<strong>Annual Investment Allowance (AIA). <\/strong>The annual limit for this generous tax allowance, presently up to &pound;500,000 of qualifying expenditure can be written off against taxable profits, was due to revert to &pound;25,000 from 1 January 2016. It has been confirmed that the &pound;25,000 limit will instead increase to &pound;200,000 with no further changes currently tabled.<\/li>\n<\/ul>\n<p>\n\t&nbsp;It was also announced that Corporation Tax rates would fall to 19% in 2017 and 18% in 2020.<\/p>\n<p>\n\t&nbsp;A number of counter measures will also be introduced to curb tax avoidance. This continues HMRC&rsquo;s strategy to root out and penalise businesses that continue to misuse tax legislation in a way not intended by parliament.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>&nbsp;Some of the key changes that will impact small businesses in particular are set out below: Taxation of dividend income from April 2016. The present 10% dividend tax credit is being abolished from April 2016. In its place an annual dividend tax allowance of &pound;5,000 is being introduced. Dividends received will be free of further [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-357","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=357"}],"version-history":[{"count":0,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/357\/revisions"}],"wp:attachment":[{"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slacc.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}