Dividend Allowance Cut Dropped from Finance Bill

The Finance Bill has passed through the House of Commons and we can now be sure that it will become law. This includes the terribly unpopular reform of off payroll working in the Public sector. However, several other clauses have been removed to facilitate the bill’s swift passage.

One such casualty was the section that reduces the dividend allowance from £5000 to £2000. So, for now at least, the dividend allowance remains at £5000.

Helen Christopher, Operations Director at Orange Genie Accountancy said, “In the short term this is good news for contractors who can continue to take £5000 dividends tax free. Only time will tell if this proposal is put back on the table after the General Election”

If you have any questions about contracting please call our expert team on 01296 468 483 or email info@orangegenie.com

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