Rules were introduced in April 2016 which limited the amount of money – known as Dividends – Directors could withdraw tax free from Limited Companies.

This has had a direct impact on numerous Directors, particularly those who are Directors and Shareholders of their “own” companies, with many seeing a sharp increase in their Income Tax Liabilities.

Once again, the amount that Directors can now take as a Dividend tax free allowance has been changed, and from 1st April 2017 stands at just £5,000. This will reduce even further from 1st April 2018 and become just £2,000.

The objective of this is to encourage Directors to take higher salaries to meet their living requirements and therefore pay their Tax and National Insurance Liabilities through the PAYE scheme.




Should this change affect you and you wish to obtain further information, then please do call us on 01751-475810

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