If you are a company shareholder, dividends can be a tax efficient remuneration strategy.

Dividends are taxed differently to salaries, and no national insurance contributions are payable on dividends.

For 2017-2018 the first £5,000 of dividend income is tax free and basic rate taxpayers pay 7.5% tax on dividend income above this.

However, the £5,000 dividend allowance will reduce to £2,000 with effect from 6 April 2018.





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