Last year (2022), there was a change to the tax rate for dividend payments. This only affects people who own a limited company and pay themselves with dividends, as opposed to sole traders. If you do run your landlord business through a limited company, you should be aware that the dividend tax rate went up by 1.25% in April 2022. There’s still a £2000 annual dividend allowance – so you don’t pay any tax on dividends under that amount. For anything over that amount, the new rates are: - 8.75% for basic rate taxpayers - 33.75% for higher rate taxpayers - 39.35% for additional rate taxpayers