Budget Flash (1): IR591 = 19% dividend tax

The waiting and speculation about the form IR591 would take came to an end at 1pm today when Chancellor Gordon Brown outlined in his Budget statement the substance of what to date has only been speculation and how he intends to ensure that small businesses and freelancers 'pay the right amount of tax'.

Small company dividends will be taxed at 19 per cent.

He announced that he will retain the zero per cent tax band for the first £10,000 of profits. His aim is ‘to encourage investment in the business while ensuring that businesses do not avoid tax by taking income as dividends rather than salary.’

UKTECH will be continuing coverage of the issues relevant to freelancers during the day, with expert comment and analysis from Kevin Miller and freelancer tax specialists, Qdos Consulting

More news on developments to follow.