Changes to tax on Dividends

For small business owners dividends have traditionally been seen as the  preferable way to take money out of a business. This was because the tax rates on dividends were lower than if the money had been taken as salary. From April 2018 the rules have changed making this method less attractive as the government aimed to reduce the tax difference between the self-employed and those working through a company, although with careful planning it can still be the more tax effective option.