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Telling HMRC about Dividend Income
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TJL
Posted: 14 January 2024 16:51:46(UTC)
#16

Joined: 14/03/2011(UTC)
Posts: 1,630
Limited experience of SA, so talking through my arse (as usual).
But is it not just a case of reporting your overall situation at the end of the tax year?
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Stephen B.
Posted: 14 January 2024 16:55:00(UTC)
#18

Joined: 26/09/2012(UTC)
Posts: 795
There was supposed to be a project for dividends and interest to be reported automatically so your tax return would basically be filled in for you, but it doesn't seem to have happened yet ...
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Hilda Ogden
Posted: 14 January 2024 16:58:53(UTC)
#17

Joined: 31/07/2023(UTC)
Posts: 892
TJL;292660 wrote:
Limited experience of SA, so talking through my arse (as usual).
But is it not just a case of reporting your overall situation at the end of the tax year?

Yes. That's the least painful way to do it in my opinion. As long as you have the numbers available to hand, doing the self assessment return on line using the HMRC on line system takes not much more than a few minutes.

Watch out for the following year. You might trigger a demand for payment on account for the following year. Just something to be aware of and be prepared for.
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Busy doing nothing
Posted: 14 January 2024 20:55:19(UTC)
#19

Joined: 01/03/2021(UTC)
Posts: 376
If dividend income is more than the £1000 allowance, but is less than £10,000 then you can notify HMRC by letter and ask them to adjust your personal allowance accordingly so that any monies owed can be deducted out of your salary or pension. You do not have to fill in a tax self assessment form.
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Stephen B.
Posted: 14 January 2024 21:27:51(UTC)
#20

Joined: 26/09/2012(UTC)
Posts: 795
Busy doing nothing;292679 wrote:
If dividend income is more than the £1000 allowance, but is less than £10,000 then you can notify HMRC by letter and ask them to adjust your personal allowance accordingly so that any monies owed can be deducted out of your salary or pension. You do not have to fill in a tax self assessment form.


Well indeed - so you can write a letter, post it, check that hmrc have got it, wait some time to see if they do in fact update your tax code and that they got it right (which means understanding how tax codes work), chase them if they haven't, and then see if your employer has applied it correctly. Or you can spend a few minutes putting a couple of numbers in an online form, immediately see the tax calculation, pay the tax online and you're done for another year ...
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Thrugelmir
Posted: 14 January 2024 22:12:19(UTC)
#5

Joined: 01/06/2012(UTC)
Posts: 5,332
Aminatidi;292649 wrote:
Thanks Andrew it looked right but there were questions like "has this dividend finished?".

What the hell does that even mean?! 🤬



Finished........... would ended, concluded, terminated, completed have made comprehension easier.


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Busy doing nothing
Posted: 14 January 2024 23:28:35(UTC)
#21

Joined: 01/03/2021(UTC)
Posts: 376
Stephen B.;292681 wrote:
Busy doing nothing;292679 wrote:
If dividend income is more than the £1000 allowance, but is less than £10,000 then you can notify HMRC by letter and ask them to adjust your personal allowance accordingly so that any monies owed can be deducted out of your salary or pension. You do not have to fill in a tax self assessment form.


Well indeed - so you can write a letter, post it, check that hmrc have got it, wait some time to see if they do in fact update your tax code and that they got it right (which means understanding how tax codes work), chase them if they haven't, and then see if your employer has applied it correctly. Or you can spend a few minutes putting a couple of numbers in an online form, immediately see the tax calculation, pay the tax online and you're done for another year ...

Entirely the choice of the OP which way he decides to go about it, just trying to be helpful and pointing out the options.
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1 user thanked Busy doing nothing for this post.
Jay P on 14/01/2024(UTC)
bearcub
Posted: 09 February 2024 15:02:33(UTC)
#12

Joined: 07/05/2023(UTC)
Posts: 191

Thanks: 462 times
Was thanked: 281 time(s) in 119 post(s)
JayW;292655 wrote:
You can write to them declaring the divided income and ask that they take the tax via your tax code. With any luck they won't ask you to register for self-assessment.

This. I'd suggest writing to HMRC as soon as TY 23/24 is finished, explain your situation and ask them to advise how you should proceed.

When I was PAYE rather than working freelance, I was in and out of Self Assessment a couple of times over the years depending on how much CGT, dividend and other income I had. Generally, if you go over the various allowances, they ask you to complete SA. Using the portal is pretty straightforward provided you keep decent records – it calculates everything automatically and shows you a working for the tax calc which is actually really useful in helping you to see how the tax system works in practice. Before I did SA, some of the tax rules and allowances seemed mind-bendingly abstract.
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2 users thanked bearcub for this post.
Tim D on 09/02/2024(UTC), SF100 on 09/02/2024(UTC)
Thrugelmir
Posted: 09 February 2024 15:09:12(UTC)
#13

Joined: 01/06/2012(UTC)
Posts: 5,332
bearcub;295699 wrote:
JayW;292655 wrote:
You can write to them declaring the divided income and ask that they take the tax via your tax code. With any luck they won't ask you to register for self-assessment.

This. I'd suggest writing to HMRC as soon as TY 23/24 is finished, explain your situation and ask them to advise how you should proceed.



Register for a personal tax account . Makes the entire exercise effortless. As was said earlier once you find your way around. Updating any source of income takes a matter of minutes.
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