Unwelcome Tax Surprise
So-called Dividend Allowance and Savings Allowance sound like a benefit that’s new for your 2017 tax return. But they come with a sting in the tail if your dividends or interest are more than the allowance. Anyone with dividends exceeding £5,000 or interest exceeding £1,000 may be facing a tax bill for the first time on such income. Go back a year to your 2016 return and the tax credit took care of the tax on dividends for most people; tax was deducted at source on interest – and often led to a rebate. That has changed, and we are beginning to see substantial tax bills on investment income now received gross, many generating payments on account for the first time, as well.
Can anything be done? Call us and ask for Richard, to discuss your tax situation as there may be ways to at least ease the pain in future.