HMRC will no longer spread payment of tax bills by collecting them through the PAYE system where this will result in you losing more than 50% of your salary in deductions. Instead, the tax will be payable in one amount on the 31 January following the tax year to which it relates
Director shareholders who take a small salary from their company and the rest of their income as dividends are one of the groups most likely to be affected by the new rules.
Where the new rules affect you it might be worth increasing your salary sufficiently so that HMRC will use the PAYE system to spread the collection of any tax you owe.
Contact us for further advice or assistance.