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Self Assesment - Dividend Income

  • Member PM.Dip
  • Practice Licence
  • 5 posts
  • # 118828

Hi All,

 

Really basic question, but please can you advise that when submitting your tax return online and you are declaring dividend income, do you input the figure after deducting the £2000 tax free allowance for example (16,000 received 14000 declared) or so you input the full 16,000 and in which case where in the tax return to you claim the relief of the first £2000 tax free?

 

Many Thanks

Sally Chalmers-Wilkes MICB

  • Member
  • 30 posts
  • # 118833

Hi Sally,

I  went through self assesment tax return study last nightand as per that you need to take out £2000 allowance first before you count tax on dividend. If higher tax payer -32.5 % or if basic £7.5 % and additional rate payer 38.1%.

 

Thank you very much.

 

Kind regards,

Mehul

  • Member PM.Dip
  • Practice Licence
  • 5 posts
  • # 118834

Mehul said:

Hi Sally,

I  went through self assesment tax return study last nightand as per that you need to take out £2000 allowance first before you count tax on dividend. If higher tax payer -32.5 % or if basic £7.5 % and additional rate payer 38.1%.

 

Thank you very much.

 

Kind regards,

Mehul


 Hi Mehul

 

Sorry, I think we had cross wires in terms of the enquiry! I was just wanting to know if when filling in the self assessment online with HMRC whether you deduct the £2000 tax free allowance, I have since found out the answer and when filling it on online I'm real time you actually declare the entire total dividend then the HMRC take the allowance into consideration automatically when calculating the tax. 

 

I'm terms of calculating it manually for study purposes then yes you deduct the £2000 and calculate the tax on the remaining.

 

Thank you 

Sally

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