Dividend Impact Review resource

"...a great tool  in giving them options in trying to reduce that liability, by showing them what making a couple of changes can make to their tax bill."



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Main changes

To summarize the main changes are;

  • The 10% notional dividend tax credit has been abolished,

  • Each individual is now entitled to a £5,000 a year (£2,000 from April 2018) tax-free dividend allowance,

  • Dividend income in excess of this allowance is taxed at 7.5%, 32.5%, or 38.1% depending upon an individuals level of income, and

  • There is no tax collected at source on the dividends.


The position for pensions and ISA’s has not changed, as dividend income remains tax free in these cases.


Impact for clients

The changes to tax on dividends has a significant impact on a wide range of clients. For those clients that are not impacted signficiantly it is still an opportunity to get closer to your clients and consider further ways to help them save tax.

The changes will;

  • Bring in much higher tax payments in January 2018 for some clients, who will thank you for an early warning,

  • Reduce the tax burden for some, and even allow some to be taken out of self assessment,

  • Bring in the need for action, whether to help reduce the tax burden or action the claim to reduce payments in January 2017 and July 2017 where the tax burden will reduce, and

  • Impact on the decision for some business owners whether to incorporate or not, and some whether to dis-incorporate or not.


Our Impact Review pack will help you

Our Dividend Impact Review will help you;

  • Understand the issues and how to use the resource to set up and provide the review,

  • Promote the issue using a news item, scripted advertising slides and recorded advert video,

  • Illustrate the potential impact on clients from the changes to tax on dividends using our calculator,

  • Provide an opportunity to explore ways with clients on how they could save tax,

  • And the opportunity to sell your extra services, using our structured approach.


Check out our Property Impact Review pack.

Check out our Childcare Voucher Impact Review pack.

Check out our Company Car Review pack. 


Which membership will suit you?