The beginning of a new tax year means that you can start using up your new tax allowances from 6 April.
Not 1 April as some believe.
Let me tell you why it is important to get this date right.
Last year unbeknown to us until after the event, a contractor client decided to pay a dividend on 1 April.
The dividend was “quite large” and the contractor had already paid out dividends in the tax year up to just below the higher rate tax threshold.
He had intended for the dividend to be paid in the following tax year.
However the amount was declared and paid and we, of course, cannot change history.
The “extra” dividend paid was subject to additional income tax as it sent the contractor over the higher rate tax threshold; the extra tax due was several thousand pounds. A very expensive mistake for getting the date wrong by just a few days.
So remember that the new tax year does not start until 6 April. Please be careful with dividends around this time; if in doubt contact your accountant for help.