tax on dividends in UK

[sisonpyh]

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

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??

 

[Technically Fundamental]

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

 

[timetotrade]

I'm clearly much more exciting, having spotted your deliberate mistake ..

dividends come with 10% tax credit (!)

More info:

HM Revenue & Customs: Tax on UK dividends


Yours (off to get a life)



timetotrade
timetotrade.co.uk

 

[Technically Fundamental]

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

 

[timetotrade]