As we move towards the end of the 2022 tax year, it’s an opportunity to review your dividends and salaries before 5 April 2022.
2022 Tax Year End Planning
There’s an increase of 1.25% to dividend tax and national insurance effective from 6 April 2022.This may mean you’ll want to take more dividends in this tax year than usual, if you have sufficient profits.
Sole traders and partnerships may wish to delay investment plans to save the higher Class 4 national insurance rate.
Please see our latest Blog providing more details: On The Spot Accountants Blog - 2022 Tax Year End Planning
Director Salary Effective From 6 April 2022
Although income tax thresholds have remained the same, our recommended monthly director salaries increase slightly from £736 or £1,047 to £758 or £1,047.
Therefore, where we recommend the lower director salary, please increase your monthly standing orders with effect from the end of April 2022 from £736 to £758.
Further information
- Paula Tomlinson runs an ICAEW BAS Firm. Find her at On the Spot Accountants
- Find an ICAEW BAS Firm in your area at Find a Chartered Accountant