There have been several tax changes in the Budget:

1. Changes to Personal Allowances –
   The Personal Allowance is the amount of income you can earn before you start paying Income Tax. This is currently £10,600 – it will already rise to £11,000 in 2016, and will now increase further to £11,500 in April 2017.

   The point at which you pay the higher rate of Income Tax will increase from £42,385 to £43,000 in 2016 and to £45,000 in April 2017.

2. Employment Allowance – The employment allowance is £3,000 but there is a restriction on it being used by single person companies.
3. Dividend Tax -From April 2016 you’ll pay tax on any dividends you receive over £5,000 at the following rates:
   • 7.5% on dividend income within the basic rate band
   • 32.5% on dividend income within the higher rate band
   • 38.1% on dividend income within the additional rate band

   This simpler system…