SME Tax News

The 2009 Finance Bill received Royal Assent on 21 July 2009 and so it now called the Finance Act 2009.

When a dividend is also subject to NICs…

2010 UPDATE: This case subsequently went to appeal - see When a dividend is subject to NICs (Part 2)

This case is going to excite tax advisers because it is often argued that a dividend can only be taxed once – as a dividend, but no one has been particularly clear about the NICs aspect, until now. The decision has important ramifications for small companies who use dividends as part of the remuneration package, as well as for those designing share based incentive schemes.