Goldwyns News

As the 2015/16 tax year draws to a close, we will shortly be entering the 'new' dividend regime which takes effect from 6 April 2016. The existing notional tax credit will cease to exist and the tax on dividends will be increased. Where a taxpayer is only in receipt of a small amount of dividend income it may represent a small tax saving, but for most business owners it will be felt as a true cost. Circumstances will vary, but for most the advantage of dividends over salaried income has narrowed significantly.

Of lesser general media coverage but equal significance are the pending changes in the UK financial reporting landscape. The numerous existing reporting standards are being replaced by a 'simplified' framework, predominantly driven by 'FRS 102 - The financial reporting standard in the UK and Republic of Ireland'. FRS 102 represents a major overhaul of accounting practices in some areas, so expect to see some changes filtering down over the course of the next year or two. Large companies with December 2015 year ends will be the effected imminently, with smaller companies transitioning to the new standards in 2017.

As always we will be discussing these implications with you on an individual basis but needless to say in these tumultuous times neither accounts nor tax returns will look quite the same in the future!