Maximise use of your basic rate tax band
I originally posted this article on the a4uforum in March 2007, and have updated it for the current tax thresholds.
We recommend to all our clients that they maximise the use of their basic rate band. This can be done by declaring interim dividends to take total taxable income upto the maximum at which the basic rate will still apply.
As dividends have a 10% tax credit attached, this tax credit can be used to effectively pay your personal tax liability on the dividend.
