Accountants warn small businesses to prepare for tax rises in April

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STEPH and Mark Rickaby, directors of Wiltshire-based accountancy firm Sunflower Accounts Ltd, are warning company shareholders & investors about taxes being introduced from April 6 this year.

The couple who run their business from Calne are anxious to inform small businesses across the south west their tax bills are likely to rise soon as a result of a Government decision to tax dividend payments.

Steph said: “It’s very important small business owners – and anyone who receives dividends – understand and plan for the upcoming changes.

“Planning your finances is now key to reducing your exposure to increased tax liability.”

The couple have created a short video to explain the changes in a bid to highlight the issue to a wider audience. The video can be seen above.

The introduction of tax on dividends is likely to have an impact on small businesses in particular. There were already tax liabilities on dividends for people who are higher rate tax payers. Their tax will also rise under the new rules.

Campaigners across the UK have felt these rises will have a disproportionate effect on microbusinesses. A petition “Reconsider The New Dividend Tax On Small Business” has been circulating on social media – https://petition.parliament.uk/petitions/106525

To date it has gathered around 53,000 signatures which has led to the Government issuing a written response. This says the decision to tax dividends will pay for other reforms including a reduction in corporation tax and will help reduce deliberate tax avoidance.

The Government said: “These reforms, which will also simplify the dividend tax system, will significantly reduce the incentives for people to set up a company and pay themselves through dividends rather than wages simply to reduce their tax bill.”

If the petition collects 100,000 signatures or more the matter will have to be debated in Parliament.

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