Business owners are reluctant to take dividend

‘New data has shown that only 3% of SMEs in Scotland are planning to pay themselves a special dividend ahead of tax increases in April. The figure is far lower than the 28% of small company bosses across the UK who will pay themselves a dividend, before the rate on dividends rises by 7.5 percentage points in each tax band, according to a separate study. Experts said small-business owners are moving quickly to take out money from their businesses at a lower tax rate. Providing the accumulated profits are there, it is a perfectly sensible move and undertaken in the right way is something that HMRC has absolutely no issue with; however, small business owners who do not pay a special dividend before April 6 will have missed out, they added.

Sources: The Times, The Independent,  Daily Mail,  The Press and Journal’

It’s not that simple.  In some circumstances, paying a dividend before 6 April can actually increase the amount of tax payable, so perhaps the Scots are displaying some of that legendary canniness.  We’ve prepared a briefing paper explaining the pros and cons.  If in doubt, talk to your friendly BKL account manager.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


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