{"id":1371,"date":"2016-02-18T12:34:21","date_gmt":"2016-02-18T12:34:21","guid":{"rendered":"https:\/\/www.goodmanjones.com\/blog\/?p=1371"},"modified":"2019-12-17T05:45:17","modified_gmt":"2019-12-17T05:45:17","slug":"when-to-pay-dividends-this-year-in-light-of-the-new-dividend-regime-or-what-a-difference-a-day-makes-tax-on-dividends-paid-on-5th-april-v-tax-on-dividends-paid-on-6th-april-2016","status":"publish","type":"post","link":"https:\/\/www.goodmanjones.com\/blog\/when-to-pay-dividends-this-year-in-light-of-the-new-dividend-regime-or-what-a-difference-a-day-makes-tax-on-dividends-paid-on-5th-april-v-tax-on-dividends-paid-on-6th-april-2016\/","title":{"rendered":"When to pay dividends this year in light of the new dividend regime or What a difference a day makes \u2013 tax on dividends paid on 5th April v. tax on dividends paid on 6th April 2016."},"content":{"rendered":"<p>Many will be feeling a lot lighter following the tax payment deadline; with the start of the fiscal year soon to follow those with their own personal companies really must consider the impact of the dividend regime and how it is going to affect their tax liabilities.<\/p>\n<p>The tax consequences between paying a dividend before and after the end of the tax year are laid out below:<\/p>\n<p><em>New dividend regime \u2013 from 6 April 2016\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Current dividend regime \u2013 to 5 April 2016<\/em><\/p>\n<table width=\"612\">\n<tbody>\n<tr>\n<th width=\"149\"><strong>Dividend payment<\/strong><\/th>\n<th width=\"151\"><strong>Tax due<\/strong><\/th>\n<th width=\"133\"><strong>Dividend payment<\/strong><\/th>\n<th width=\"123\"><strong>Tax due<\/strong><\/th>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a35,000<\/strong><\/td>\n<td width=\"142\">\u00a3nil<\/td>\n<td width=\"142\">\u00a35,000<\/td>\n<td width=\"123\">\u00a3nil<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a310,000<\/strong><\/td>\n<td width=\"76\">\u00a3375<\/td>\n<td width=\"142\">\u00a310,000<\/td>\n<td width=\"123\">\u00a3nil<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a330,000<\/strong><\/td>\n<td width=\"76\">\u00a31,875<\/td>\n<td width=\"142\">\u00a330,000<\/td>\n<td width=\"123\">\u00a3348<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a350,000<\/strong><\/td>\n<td width=\"76\">\u00a37,875<\/td>\n<td width=\"142\">\u00a350,000<\/td>\n<td width=\"123\">\u00a35,348<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a3100,000<\/strong><\/td>\n<td width=\"76\">\u00a326,600<\/td>\n<td width=\"142\">\u00a3100,000<\/td>\n<td width=\"123\">\u00a322,353<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a3150,000<\/strong><\/td>\n<td width=\"76\">\u00a345,941<\/td>\n<td width=\"142\">\u00a3150,000<\/td>\n<td width=\"123\">\u00a336,217<\/td>\n<\/tr>\n<tr>\n<td width=\"158\"><strong>\u00a3200,000<\/strong><\/td>\n<td width=\"76\">\u00a364,991<\/td>\n<td width=\"142\">\u00a3200,000<\/td>\n<td width=\"123\">\u00a351,494<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>Note: The table is based on an assumption that the personal allowance has been utilised by non-savings income earned in the year. It also assumes that the individual has no other taxable income or any reliefs available.<\/em><\/p>\n<p>Of course paying a dividend in an earlier tax year will bring forward the tax due date by 12 months so the negative cash flow implications will need to be taken into account as well as the tax savings when considering whether to take dividends early.<\/p>\n<p>The new regime comes into effect on 6 April 2016, to avoid falling within the new regime dividends must be paid before then.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many will be feeling a lot lighter following the tax payment deadline; with the start of the fiscal year soon to follow those with their own personal companies really must consider the impact of the dividend regime and how it is going to affect their tax liabilities. The tax consequences between paying a dividend before[&#8230;] <\/p>\n<div class=\"brown_button\"><a class=\"more-link\" href=\"https:\/\/www.goodmanjones.com\/blog\/when-to-pay-dividends-this-year-in-light-of-the-new-dividend-regime-or-what-a-difference-a-day-makes-tax-on-dividends-paid-on-5th-april-v-tax-on-dividends-paid-on-6th-april-2016\/\">Read More<\/a><\/div>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[884,468,11],"tags":[541,66],"class_list":["post-1371","post","type-post","status-publish","format-standard","hentry","category-business-tax","category-news","category-uk-business-entrepreneurs","tag-paying-dividends","tag-tax-2"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>When to pay dividends this year in light of the new dividend regime or What a difference a day makes \u2013 tax on dividends paid on 5th April v. tax on dividends paid on 6th April 2016.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goodmanjones.com\/blog\/when-to-pay-dividends-this-year-in-light-of-the-new-dividend-regime-or-what-a-difference-a-day-makes-tax-on-dividends-paid-on-5th-april-v-tax-on-dividends-paid-on-6th-april-2016\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When to pay dividends this year in light of the new dividend regime or What a difference a day makes \u2013 tax on dividends paid on 5th April v. tax on dividends paid on 6th April 2016.\" \/>\n<meta property=\"og:description\" content=\"Many will be feeling a lot lighter following the tax payment deadline; with the start of the fiscal year soon to follow those with their own personal companies really must consider the impact of the dividend regime and how it is going to affect their tax liabilities. 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