As announced on 7 September 2021, the 1.25% increase in NIC contributions from April 2022 will be mirrored by a similar increase in the tax charge on dividends. From April 2022, the dividend tax increases will apply as follows:
Basic rate
HMRC is writing to trustees who ticked box 8.15 on the Trust and Estate Tax Return, suggesting some trusts may actually be accumulation or discretionary trusts taxed at 39.35% and 45%. Trustees must respond by 2 November 2026. Here is what HMRC contacting trusts over tax return errors means for you.
Understanding how you, your directors, and your employees will be taxed is essential for budgeting, recruitment, and remuneration planning when setting up in the UK. Download this factsheet, a companion to our Doing Business in the UK guide, for the key Income Tax, National Insurance, dividend, and Capital Gains Tax rates and thresholds for the 2026/27 tax year.
Frozen tax thresholds mean rising salaries can push earners into higher tax bands, reducing allowances and increasing overall liabilities. Has a pay rise quietly increased your tax bill? Discover how fiscal drag works, which reliefs may be affected, and the practical steps you can take to protect your income.
A clear guide to understanding dividend tax for 2026-27, covering allowances, rates, reporting thresholds, self-assessment requirements and practical tips for shareholders managing their dividend income effectively.
Understanding UK tax for Indian businesses is essential as the India–UK CETA reshapes market entry. From entity structure and transfer pricing to R&D reliefs and payroll obligations, here is what you need to know before you take your first step.
Dividends are taxed based on your overall income, with rates increasing as you move through tax bands. By understanding allowances, reporting requirements, and planning strategies, you can manage your dividend tax liability more effectively.
Clear rules determine Scottish taxpayer status, focusing on residence, main home, and time spent in Scotland.
Dividends remain a popular source of income, but changes to rates and allowances mean tax planning matters more than ever. Understanding how dividends are taxed helps individuals manage their overall liability and protect investment returns.
These upcoming changes to dividend, property and savings taxation will reshape how Income Tax is structured and applied, creating a clearer order of taxation and gradually increasing rates from 2026 onwards.
Pre-tax year end planning helps taxpayers and businesses use allowances and reliefs before they expire, reducing avoidable tax.
New tax rates for income sources will apply from 2026, increasing rates for dividends, property, and savings while keeping allowances unchanged.
Understand how HMRC decides Scottish Income Tax status, including main home rules, dual‑home situations, mid‑year moves, and what income SRIT covers. Keep addresses updated and check for an “S” PAYE code.
Income Tax thresholds will stay frozen until 2031, pushing more earners into higher bands. Dividend, property, and savings tax rates will rise.
Will dividend taxes increase? With allowances shrinking, planning ahead is vital to avoid higher tax bills and missed opportunities.
Trustees must manage assets and follow tax rules. Understanding trusts and income tax helps avoid penalties and ensures proper compliance.
With the UK Budget on the horizon, now is the time to act. Reviewing your allowances, income, and investments can help you make the most of current tax rules before any changes take effect.
The Scottish rate of income tax applies to non-savings and non-dividend income of Scottish taxpayers, defined by their close connection with Scotland. Residency, not nationality or income source, determines tax liability. Taxpayers may also be liable if they regularly stay in Scotland.
Readers are reminded that if the dividends they draw from their company, when added to their other income, exceeds the basic rate Income Tax Band, then much higher rates of dividend tax will apply.
The tax rates for dividends received (in excess of
UK trusts involve assets, trustees, beneficiaries, and Income Tax implications. Diverse tax rates apply, so thorough planning is essential to ensure compliance and optimize financial outcomes for different trust types.
In the UK, dividend taxation includes a £1,000 tax-free allowance and varied tax rates depending on income bands. Reporting options are available, and Self-Assessment may be required for larger dividend incomes.
Taxpayers with homes in both Scotland and the UK must determine their main home for Scottish Rate of Income Tax (SRIT). HMRC guidance helps identify the main home, with SRIT applicable for a whole tax year.
The Scottish Rate of Income Tax (SRIT) affects non-savings and non-dividend income for Scottish taxpayers. Determining Scottish taxpayer status relies on residence criteria or close connections with Scotland, not on nationality or income source.
The Scottish rate of Income Tax (SRIT) is payable on the non-savings and non-dividend income of those defined as Scottish taxpayers.