5 day tax planning window

The tax rate for small companies that pay dividends is changing on 1 April 2006. By small companies, I mean companies with annual profits less than £50,000.

For the current year, you can gain a tax advantage by delaying payment of your dividends until 1 April 2006 or later. And if you pay the dividend before 6 April 2006 you won’t lose a personal tax advantage that you might otherwise do.

Make sure you get the paperwork dates right though as this is only a 5 day window!