Moore Stephens

Small Business Dividend Pay-Outs Soared Last Year Ahead of Tax Changes

Small Business Dividend Pay-Outs Soared Last Year Ahead of Tax Changes

Small and medium business owners in the UK chose to pay out 94% of their profits to their shareholders in 2015 rather than re-invest the money back into their business, a report from Moore Stephen has suggested. The total amount of dividend payments made by UK enterprises hit £28.3bn in 2015 to 2016, up 63% from the previous year’s total of £17.5bn. Moore Stephens suggests such a trend was heavily influenced by the recent changes to dividends tax, announced in July 2015 and introduced by George Osborne in April 2016, and the economic uncertainty caused by the EU referendum. These changes included the dividend tax rising by 7.5% to 32.5% with the government also introducing an allowance where the first £5,000 of dividend receipts in a tax year will go untaxed. Moore Stephens believe the cha... »

Entrepreneurs Aged Over 60 Urged to Plan Exit Strategies

Entrepreneurs Aged Over 60 Urged to Plan Exit Strategies

With a third of UK business directors now aged 60 or over, Moore Stephens has issued a report urging older entrepreneurs to plan their exit strategy. Surveying 403,000 directors on the boards of 83,000 small enterprises, the accounting and advisory firm found that the average age of small enterprise directors today is 54 – suggesting that many will need to consider retirement plans in the near future. The report flagged that there is a misconception among business owners when it comes to exiting; many business directors said that they estimated it would only take a few months to get their company ready for a trade sale, when in fact it could take years. Moore Stephens has advised business owners to set up a trust well in advance of retirement, as well as looking at potential tax reliefs su... »

Small Businesses Call for Flat Rate of Tax in Upcoming Budget

Small Businesses Call for Flat Rate of Tax in Upcoming Budget

55% of the UK’s small businesses want Osborne to introduce a flat rate tax system in this week’s Budget, according to a report by accountancy firm Moore Stephens. The majority of the business surveyed said that flat rate tax measures would help simplify the taxation system which is seen as too complicated and time consuming. 55% of respondents were also in favour of government pushing for further crackdown on tax avoidance, particularly VAT avoidance, by large multi-national companies. Simon Baylis, partner at Moore Stephens, said: “Above all small businesses want simplicity in the tax system. “Reducing the complexity of the tax system would provide a boost for businesses as owners and managers would regain time for productive work that is currently spent on tax issues.” Need help completi... »

Business Owners to Pay Themselves Special Dividends Ahead of Tax Hike

Business Owners to Pay Themselves Special Dividends Ahead of Tax Hike

More than a quarter (28%) of UK small business owners are planning to pay themselves a special dividend ahead of the forthcoming dividend tax hike in April, according to a report by Moore Stephens. Announced earlier this year as part of the Summer Budget, the tax rate on dividends for higher earners will increase from 25% to 32.5% – with the rate for additional tax payers increasing from 30.56% to 38.10%. The survey of business managers also found that over a fifth (21%) of small business owners will reduce their dividend pay outs once the changes come into force, while just 6% expect to increase dividends to maintain their net income. The news follows an ongoing petition calling on George Osborne to reconsider the changes to dividend tax. The petition has now been signed by over 57,... »