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Are you ready for the end of UK dividend allowances?

The UK government is continually reducing the allowance for dividends, year on year. This means that any amount of dividends earned in the UK will be taxed accordingly. This could have serious implications for anyone relying on dividends as a source of income.

If you are looking to avoid paying tax on dividends, you may need to consider relocating. Have you thought about Portugal, Malta, the UAE or Cyprus?

How this affects you

If you provide yourself a salary through dividends, the UK’s taxable changes will increase the amount of tax payable year on year. According to reports, the UK government is continuing to reduce the yearly taxable allowance for dividends. Which is expected to decrease to just £500 between 2024 and 2025.

It’s essential to be aware of these changes and consider how to manage your finances in a tax-efficient manner. Paying high payments of tax can severely impact your cash flow and limit your ability to invest back into your business. However, there are ways to avoid paying tax on dividends! – read on to discover more.

 

Ways to avoid paying tax on dividends

One way to avoid paying tax on dividends is to open a company abroad. Countries like Portugal, Malta, UAE, and Cyprus offer attractive tax regimes for businesses and investors. With RHJ Accountants, you can benefit from our expertise in company incorporation for these countries.

Our expert tax team can help you significantly reduce your yearly tax payments. Allowing you to invest more back into your business. By choosing to move abroad, you can take advantage of the favourable tax rates and maximise your profits.

If you’re interested in exploring your options and discovering how you can benefit from moving abroad, arrange a free consultation with our team. We can provide you with more information on the options available to you. Helping you make the best decision for your business.

 

How RHJ Accountants can help

At RHJ Accountants, we understand that the removal of the UK dividend allowance can have a significant impact on your finances. That’s why we offer a range of services to help you avoid paying tax on your dividends and maintain your financial well-being.

We can help by assisting you in opening a company in countries such as Portugal, Malta, Cyprus or the UAE. This strategy can provide you with significant tax benefits, allowing you to retain more of your income and increase your profits. Our team of experienced tax advisors can also provide you with ongoing advice and planning for your new investment.

We also have a team of immigration lawyers who can help you find the right visa for your relocation abroad, especially given that the UK has now left the EU. We can advise you on the most suitable visa options for your circumstances and guide you through the application process.

Don’t forget to check out our other blog articles for regular updates on the countries we can support you in and the latest tax strategies for minimising your liability.

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💬 PSA: between April & June our Portuguese team have limited meeting availability due to the Tax Return Submission Period 🇵🇹