Are You Speaking to Your Accountant About Dividends – Or Just Declaring Them?
When it comes to dividends, many business owners fall into the same trap:
they assume dividends are simply declared, taxed, and forgotten about.
But here’s an important question:
Do you speak to your accountant about how much dividend you should be taking from your business?
Or does your accountant simply declare the amount you’ve already taken?
That difference could cost – or save – you money.
Dividends Are a Planning Opportunity, Not Just a Reporting Exercise
Dividends shouldn’t be treated as an afterthought. They are a powerful tax planning tool when used correctly, especially for directors of limited companies.
With changes to dividend tax on the horizon from April 2026, proactive planning has never been more important. Higher dividend tax rates could mean that dividends taken in future years are taxed more heavily than those taken now.
Could Taking Dividends Earlier Save You Tax?
In some cases, it may be advisable to declare higher dividends in the 2024/25 and 2025/26 tax years, even if you don’t physically withdraw all of the money from the company.
How does that work?
The dividend is declared and taxed in the current tax year
If you don’t withdraw the cash, the amount owed to you sits in your Director’s Loan Account
The company owes you the money
When you withdraw those funds in future tax years, you won’t be taxed again
This could help you avoid higher dividend tax rates in later years
This approach won’t be right for everyone, but for the right business owner, it can make a real difference.
Are You Missing These Conversations?
We often ask new clients:
“Has your accountant ever discussed dividend planning with you?”
In many cases, the answer is no.
At Bidwell Accountancy, dividend planning is a standard part of our conversations with clients. We don’t just declare figures – we help you decide what makes sense for you and your business.
A 10-Minute Conversation That Could Save You Money
A short conversation today could mean paying less tax tomorrow.
If you’re a director and you’re unsure:
whether you’re taking the right level of dividend
whether future tax changes will affect you
or whether you’re missing a tax-saving opportunity
then now is the time to act.
👉 Speak to Us Before the Tax Rules Change
The window for planning ahead of the April 2026 dividend tax increase is already closing.
Book a quick, no-obligation call with Bidwell Accountancy today.
In just 10 minutes, we can tell you whether dividend planning could save you money – and if it can’t, you’ll know where you stand.
📞 Call us on 01908 380391
🌐 E-Mail info@bidwellaccountancy.com
📍 Supporting business owners in Milton Keynes and beyond
Don’t wait until your tax return is due.
Start the conversation now – before higher tax rates make the decision for you.
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