2022 Year End Tax Planning – Director Salary Increase April 2022

As we move towards the end of the 2022 tax year, it’s an opportunity to review your dividends and salaries before 5 April 2022.

2022 Tax Year End Planning

As you’re aware, there’s an increase of 1.25% to dividend tax and national insurance effective from 6 April 2022.

This may mean you’ll want to take more dividends in this tax year than usual, if you have sufficient profits.

Sole traders and partnerships may wish to delay investment plans to save the higher Class 4 national insurance rate.

Please see our latest Blog providing more details: On The Spot Accountants Blog – 2022 Tax Year End Planning

Director Salary Effective From 6 April 2022

This is to confirm that although income tax thresholds have remained the same, our recommended monthly director salaries increase slightly from £736 or £1,047 to £758 or £1,047.

Therefore, where we recommend the lower director salary, please increase your monthly standing orders with effect from the end of April 2022 from £736 to £758.

As always, do let me know if you’d like to discuss further.

Thank you.

Paula Tomlinson BFP FCA CTA

Founder and Director