tax on dividends in UK

sisonpyh

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I've had shares for 4 years, and received dividends totalling over £1,000
but i've never declared this because i forgot :p

i'm going to sell the shares soon... what shall i do about the tax on dividends??
what procedure must i follow now? or shall i just wait until the Inland Revenue find out??
 
Hello mate.

Well who ever thought they'd need an accountant on this site lol.

Well first off you need to break down how much you recieved in each tax year.

I would call the revenue and arrange an appointment with the tax office to have them amend your tax return.

If you are a basic rate tax payer you will have no liability.

If you are in the 40% tax band then you will have a small tax liability. Gross up ur dividend by 20% i.e 1000/ 0.8 = 1250 then you will owe 32.5 % or 406.25 of which you will recieve 20% tax creit (dont ask) 312.50 so you owe 406.25-312.50 or the grand sum of 93 and three quarter guineas or £93.75.

You can cancel out this liability if you contribute to a private pension (not employees pension). This will increase your basic rate allowance. If you contributed 125 per year towards a commercial pension then you will have no dax du pays

Im so exciting
 
I said 10%.

The computer must have misunderstood me and changed the binary coding from 1 to a 2 as it travelled through cyberspace.

thats the only explanation
 
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