Following the introduction of the new tax regime on dividends, HMRC are issuing PAYE coding notices with adjustments to account for taxes on dividends for 2016/17.

This will mean that individuals with both employment and dividend income may see that they face an immediate tax deduction from their salaries during the year, effectively bringing forward the payment of tax on dividends from the usual self-assessment payments due in January 2017, July 2017 and January 2018.

These coding adjustments are not essential and can be removed on request – meaning that for many business owners taking their drawings in the optimal manner, there will be no tax to pay until the usual self-assessment due dates.

If you have recently received a 2016/17 PAYE coding notice which is not 1100L, and would like to defer the payment of tax, please contact your Client Manager.

If you would like to see the recent webinar of dividends, please request a copy of the recording here.

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