In the UK budget held in July of this year George Osborne announced the introduction of a new dividend tax. Contractors who operate a business through a company and remunerate by taking dividends as opposed to other forms of renumeration may therefore find themselves worse off after 6th April 2016.
There are several avenues however available in order to negate this impact.
Firstly would be to vote a dividend before April 2016, but care must be taken when opting for this avenue as there are several other factors that must be taken into account which would could come into effect.
Secondly is to consider one of the many umbrella and payroll options which Chesterfield provides to a variety of contractors in a number of countries. Whatever the special circumstances concerning your work placement, we have specially designed structures in place to ensure that receiving your income goes as smoothly as possible.
Payment by dividend may still be a much better option for many contractors due to various factors, but it is not the only option and here at Chesterfield we are more than happy to talk through each option available and discuss the pros and cons to find the right solution for you!
Please contact us for more information.