We are now in the new tax year 2013-14 and there are some changes that have now come into effect. In summary these are:
New Tax Year - The changes
- Increase in personal allowance to 9,440
- 50% tax rate lowered to 45%
- Start paying 40% tax after 41,450 fall from 42,475
- Every payroll must be reported to HMRC (Real Time Information - RTI) – see previous blog for more details.
Impact on owners of limited company (incorporated) businesses is an increase in the weekly salary of owner directors to new NI efficient threshold, requirement to communicate monthly payroll to HMRC and decrease basic tax rate band for dividend payment at lower rate.
If you are lucky enough to earn over 150,000 per annum then you will not only pay 5% less tax on salary above this threshold at 45%, you will also pay 5% less on dividend income at 37.5%.
If you would like to find out more how this may impact you please contact me on 01892 710 510 or email at Nikolai@nayloraccountancy.com