Although the implications of next year's increased tax on dividends are now becoming widely understood (and we've been pointing them out since Budget day!), it took a while for lots of limited company owners to realise what happened.
Partly, that's because the media are obsessed with categorising the Budget news into different sections. So, the decrease in corporation tax went into the Business section. Great, thought company owners! Meanwhile, the increase in dividend tax went into the Personal section, which many business owners aren't going to inspect as quickly or as closely.
If you're going to use that categorisation, those are technically the correct categories. But it's nonsense to split the two things. The taxation of profits in companies and then the taxation of what remains in the hands of company owners are inextricably linked. To understand the big picture you need to look at them together. The universal media categorisation can be really unhelpful.
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