HMRC criticised on dividend tax change communication

  • by Carole Jordan
  • 01 Apr, 2016
Small business owner calculating dividend tax

Taxpayers are not necessarily receiving clear communication on how their savings and dividends will be taxed because of HMRC’s failure to properly explain the moves, according to a group of peers.

Dividend tax change criticised

The House of Lords Economic Affairs Report Committee expressed concern that taxpayers are unaware of important changes coming into effect in a matter of weeks. The Bill includes provisions that scrap the Tax Deduction Scheme for Interest, where banks deduct tax from most interest before it is paid. This will catch out most taxpayers, but according to the Committee, even those expecting the changes are left unsure whether or not they need to file a tax return and pay tax to HMRC on future interest earned.

Advisers have also voiced their concern, pointing out that ordinary taxpayers find it very difficult to navigate HMRC’s website – even for those who are very experienced.

In addition, the tax system is becoming increasingly complex, with the recent announcements over the buy-to-let taxation hikes for example, which is placing a burden on the taxpayer, and the committee has called for a “new approach” to tax policy that is carried out more consistently.

We are here to help you unravel the complexities, so please get in touch. Call us on 01273 882200 or email us at: info@businessheads.co.uk and speak to an advisor today.

All details above were correct at the time of publishing - for more up to date information please get in touch .

You might also be interested in...

Why not leave us a comment, or share with a friend...

Want free advice for your small business?
Sign up to our blog

Browse our other Small Business posts

Our latest blog

by Carole Jordan 11 Aug, 2017

HMRC have released their new advisory fuel rates for drivers of company vehicles. These came into effect from 1st July and allow reimbursement of fuel tax free at these levels.

by Carole Jordan 04 Aug, 2017

Nobody wants to pay tax on divorce. So how do you keep your tax bill down while coming to a sensible arrangement with your spouse?

by Carole Jordan 28 Jul, 2017

Since the change to Dividend tax came in you may be wondering if there are more tax efficient ways of drawing funds from your company.  Read more for an idea that can save tax each year.

by Carole Jordan 18 Jul, 2017

I love the summer for sitting back and reflecting on the year. Thinking back to the dark days of winter and forward to the joy of Christmas time. Now is the ideal time to review how your business is going and as you revive yourself through holidays and sunshine you’ll be well placed to make any changes come the autumn.

by Carole Jordan 17 Jul, 2017
Landlords will be expected to use Cash Basis Accounting from 2017/18.  
So what does that mean for your rental property accounts and tax?
More posts

Which Small Business support are you looking for?

Share by: