6 ISSUES FOR JUST £6 Subscribe to Business & Professional Life today CLICK HERE

Investors and Small Business Owners Hit in Summer Budget

PUBLISHED: 12:54 21 August 2015 | UPDATED: 12:54 21 August 2015

Owen Kyffin

Owen Kyffin


A Banbury tax expert is urging small business owners and investors to take stock after being hit by the Government’s summer budget.

Owen Kyffin, a director and leading authority on tax matters at Whitley Stimpson, the largest independent accounting company in the M40 corridor, says: “Small business owners have been hit with a double whammy – a hike in their costs through an increased minimum wage and a bigger tax bill if owners pay themselves through taking dividends rather than salary.

“There are a number of options open to them if they want to reduce their tax bill. It is a complicated situation and small business owners would be well advised to seek advice.

“Similarly, investors with a large portfolio will be hit through tax increases on share dividend income. This could even apply to pensioners who have gone down the route of supplementing their income through investing in the stock market.”

Owen was commenting on the Government’s announcement of a higher minimum wage and higher taxes for shareholders who receive more than £5,000 a year from dividends.

He said: “The budget is complex in relation to tax matters. The Government has also changed the rules for investors in the growing buy-to-let market, who are also faced with higher taxes.”

Under the new system everyone who receives dividend income will not pay tax on the first £5000. Basic rate taxpayers will pay 7.5 per cent on any additional dividend income, higher rate taxpayers will pay 32.5 per cent and additional rate taxpayers 38.1 per cent.

Buy-to-let landlords will be hit with higher taxes because generous tax relief, particularly against monthly interest repayments is being watered down.

Some tax experts have forecast that some small business owners who pay themselves through dividends might even sell up and pay a lower rate of capital gains tax and that buy-to-let landlords may increase rents to claw back loss of income through tax relief.

“As always there are several options open for discussion for those who are affected by the budget and large investors and small business owners would be well advised to examine these as soon as possible,” said Owen.


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other Cotswold Life visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Cotswold Life staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Cotswold Life account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from Cotswold Life

Yesterday, 14:12

“Life Safe provides a simple yet secure way for clients and their families to keep safe their most important documents and develop a record of their valuable and treasured assets.”

Read more
Yesterday, 14:00

“The logistics hub is another example of where we have worked in partnership to support skills needs in the area and link our student body with future job opportunities.”

Read more
Yesterday, 13:43

“Anyone concerned about the implications of taking on a grant of probate should seek expert help.”

Read more
Yesterday, 12:33

Taking the classroom outdoors is fun, inspires fresh ideas, broadens horizons – and encourages a new generation to enjoy and care for the Cotswolds

Read more
Yesterday, 12:08

Amid the season of turkey and tinsel Whatley Manor are throwing in a festive curveball, an evening of lobster, fizz & fries!

Read more
Yesterday, 11:04

Christmas shopping at Whatley Manor on the 26th, 27th & 28th November.

Read more
Yesterday, 09:47

Join Whatley Manor on the 30th November for their tasty tapas night.

Read more
Mon, 15:25

Chipping Campden – once the meeting place for a council of Saxon kings – now offers the warmest of welcomes to all its visitors, from the humble shopper to the seasonal shin-kicker

Read more
Mon, 15:12

Property prices across Gloucestershire and the Cotswolds have risen steadily over the last few years, reflecting the trend across the country. But which area has shown the most dramatic hike in prices recently, and how does your postcode and house type compare with others in the area? You may be surprised to see the results...

Read more
Mon, 15:11

From mini Norway spruces to luxury Nordman firs, here are eight of the best places to get a luscious, green tree in the Cotswolds this festive season

Read more
Mon, 15:10

The weekend is fast approaching and for those still deciding how to spend their Friday through to Sunday, we pick 5 of the best ways to spend your weekend in the Cotswolds

Read more
Mon, 15:10

Choral carol services and grand instrumental performances, with the backdrop of some of the Cotswolds most picturesque locations, are perfect ways to embrace the festivities. We pick some of the best carol services and concerts to enjoy in the region

Read more
Friday, November 16, 2018

“‘Flexitarians’ can do one though, being alleged vegetarians who still can’t resist the sizzling siren song of the bacon sandwich when no-one is looking.” Editor Mike Lowe is attempting to seek reconciliation with those he has annoyed… well, sort of.

Read more
Thursday, November 15, 2018

“This letting to Oxford nanoSystems is a fantastic example of how we are able to provide first class facilities for growing technology companies at Abingdon Business Park.”

Read more

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Topics of Interest

Food and Drink Directory A+ Education

Subscribe or buy a mag today

subscription ad

Local Business Directory

Property Search