Personal Tax 2016/17

The deadline for the self assessment tax return for 2016/17 is 31st January 2018, which is less than 3 months away. If you haven’t completed your personal tax return yet then you haven’t got long.

The 2016/17 tax year is the first year in which the new dividend tax came into force. So, for all those who receive dividend income this new tax will apply to you. For 2016/17 and 2017/18 dividend income of less than £5,000 is tax free. Dividend income of more than £5,000 is taxed at either the basic rate of 7.5% or the higher rate of 32.5%. This means that for a lot of people your tax bill will be substantially higher than previous years, with the same income.

This change in tax not only increases the tax for 2016/17, but will also mean more people will have to make payments on account for 2017/18, which they may not have had to do previously.

Payment of your 2016/17 tax liability is due to be paid by 31st January 2018, and payments on account are due 31st January 2018 and by 31st July 2018.

Hopefully this won’t come as too much of a shock, especially if you have an accountant who has been mentioning it every chance they get!

So, my advice, is to give your accountant your personal income information sooner rather than later, so that your self assessment personal tax return can be completed in good time.

If you don’t have an accountant then please get in touch at 01207 582528 or [email protected]