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.
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.