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How business owners can beat the "dividend rate" rise

5th April 2016

On the one hand dividends represent a reward for investment and, by extension, saving which is perceived to be a good thing and a behaviour to be positively reinforced by a favoured tax treatment.On the other hand, dividends are used by many small and medium sized companies to extract profits tax efficiently for their owners, avoiding the National Insurance cost that would otherwise result were the dividends taxed as earnings – which in many cases is their true economic form.

Neil Simpson, Tax Partner shares with Business Matters readers. Read the full article here.