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Set out below are the main marginal rates of net income, with background calculation. Marginal tax rates are also included (or marginal tax+NIC rates, as appropriate)

The higher the net yield percentage, the more income the individual will ultimately receive.The higher the net yield, the lower the effective marginal rate - the marginal tax rate will be the difference between 100% and the net yield after tax. For those struggling with the marginal tax (and NIC) rates for bonuses, try adding 13.8%/1.138 = 12.13% to the amounts actually deducted from the bonus - the figure represents the Employers' NIC that must be paid out first, to derive the gross amount from which employee deductions must be made. i.e., at the Basic Rate: (13.8%+20%+12%)/113.8% = 40.25%

The figures show that, for 2016/17, dividend yield within the basic rate is marginally higher than for unincorporated/self-employed. But above that, the dividend corporate route yields are lower. They nevertheless remain superior to corresponding yields through bonus/PAYE.

Of course, this is not the complete story. There is the new "Dividend Allowance" that makes the first £5,000 of dividends tax-free at any prevailing main rate or whatever the band. Then there is the fact that dividends pay out of net profits after Corporation Tax, as set out in more detail in a previous article Finance Bill 2016: Dividends, Savings Income, Incorporation and Transferable Allowances, which in turn means that there remain advantages by reason of deferring the effects of the Higher Rate Threshold, losing Personal Allowance at £100,000+ adjusted net income, and the Additional Rate Threshold at £150,000.

The table clearly shows, however, that the trend will be for individuals to derive 6% less net income from dividends in 2016/17, than in 2015/16. (basically, 80% of the 7.5% increase in dividend tax rates from 2015/16 to 2016/17).

Likewise, that the saving against salary/bonus is much slimmer than it used to be.

There is arguably little point in taking substantial accelerated dividends in 2015/16 as against 2016/17, for most people. The yield from breaching the Higher/Upper Rate is better in 2015/16 than it would be for 2016/17 but it is much worse than using up the Basic/Ordinary band in 2016/17.

The same would broadly apply as for Additional Rate - although if you're going to be an Additional Rate dividend payer in both years anyway, then it makes sense to take more in 2015/16 and less in 2016/17. Those who are thinking along smilar lines for Higher/Upper Rate income should consider the impact of 'doubling up' on 2015/16 dividends if it takes them up to c£100,000 and starts to lose them tax-free Personal Allowance.

But - and with one eye on the clock - if you have the reserves and unutilised Basic Rate Band in 2015/16, then it would be rude not to.

Happy New Tax Year