Spring Budget 2017 - Owner managers and the self employed worse off
Some of the biggest losers this Budget are self employed people and shareholders of owner managed companies, with combined national insurance and tax rises of about £1.5bn per year once all the measures are in place (1).
From April 2018, Philip Hammond has significantly reduced the value of the tax free dividend tax allowance, from £5,000 to £2,000, and this will particularly hit those paying themselves dividends from their personal companies – these taxpayers will be worse off by at least £225 per year and could be over £1,100 per year out of pocket (2).
- 495m for NI and 930m for the dividend changes
- £3000 x 7.5%, £3,000 x 38.1%
If you would like further information on the above, please contact your usual MHA MAcIntyre Hudson advisor.