Historically, Directors were not taxed personally on Dividends, at all, and the Company, would only pay Dividend Tax.
Then a rate of £5,000 personal tax free Dividend was announced for the introduction of the 2016-2017 Tax Year.
Thus at 6th April 2016..
This then meant that all Dividends you took , above the first £5,000 of Dividends, providing you stayed within the Basic Rate Tax Banding, were taxed at 7.5%.
From 6th April 2018 this personal tax free amount of Dividend had reduced down to £2,000, so for the last few years, if you were an Owner Managed Business, and you ran the Company yourself as a Director, or with a couple of other Directors
the combined taxation would equate to
Furthermore, the rate on a Personal Self Assessment Tax Return for a Director, for Dividends have now gone up :
If you are a Director, or perhaps there are a couple of Directors in your Company, and you would like a no obligation chat about all the changes taking place, this year, and the next two years; simply email us at This email address is being protected from spambots. You need JavaScript enabled to view it., pop in for a chat at our offices at Regus, Park House, Rubery or give us a call on 0121 270 4072.