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Telling HMRC about Dividend Income
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Aminatidi
Posted: 14 January 2024 11:56:50(UTC)
#1

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Thanks to the £1000 limit for 2023-2034 dividend income I'm going to be over it.

I'm PAYE and still a basic rate taxpayer just about and I don't complete a self-assessment as I don't need to.

The dividend income was £1700 or so.

From what I can work out I need to login on the HMRC tax portal and use the "Add missing investment income" option.

Does anyone know if that's definitely the right/best way to do it?

Do I need to do it now or could/should I wait until the end of the 2023-2024 tax year and do it in one go once I have my tax certs from the likes of HL and IWeb as they're the two platforms I've had unwrapped accounts with during this tax year.

I don't mind paying the tax but bloody hell finding out the process is painful 😣
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Laura Sommer on 14/01/2024(UTC)
Stephen B.
Posted: 14 January 2024 15:18:01(UTC)
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If you expect to keep exceeding the limit you may as well register for self-assessment - I've used the online return for 25 years and I don't find it at all taxing, if your situation is fairly simple it takes maybe an hour.
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Aminatidi on 14/01/2024(UTC), Laura Sommer on 14/01/2024(UTC)
ANDREW FOSTER
Posted: 14 January 2024 15:29:38(UTC)
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Aminatidi;292625 wrote:
Thanks to the £1000 limit for 2023-2034 dividend income I'm going to be over it.

I'm PAYE and still a basic rate taxpayer just about and I don't complete a self-assessment as I don't need to.

The dividend income was £1700 or so.

From what I can work out I need to login on the HMRC tax portal and use the "Add missing investment income" option.

Does anyone know if that's definitely the right/best way to do it?

Do I need to do it now or could/should I wait until the end of the 2023-2024 tax year and do it in one go once I have my tax certs from the likes of HL and IWeb as they're the two platforms I've had unwrapped accounts with during this tax year.

I don't mind paying the tax but bloody hell finding out the process is painful 😣


That's how Ive added things before. Its a bit opaque but once you know its fairly easy to repeat.
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Aminatidi on 14/01/2024(UTC), Thrugelmir on 09/02/2024(UTC)
Aminatidi
Posted: 14 January 2024 15:52:48(UTC)
#4

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Thanks Andrew it looked right but there were questions like "has this dividend finished?".

What the hell does that even mean?! 🤬

The key thing is that as I now understand it I don't need to do it immediately or in any rush and what seems to make sense is to wait until the platforms I use issue their 2023-2024 tax certificate/summary and do it then and for the whole 2023-2024 tax year.

I know Self-Assessment has been discussed before but unless I'm missing a trick when I'm basically PAYE other than some dividends I'd sooner have an easy life and just tell HMRC about the "some dividends" part.

If only they made it easier to do so and be sure I was doing it right...
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Laura Sommer on 14/01/2024(UTC)
soulman
Posted: 14 January 2024 15:59:15(UTC)
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It's straightforward to use the HMRC tax portal and the "Add missing investment income" option. I've recently updated this (once all my dividends for this tax year were known). They amended my tax code within about 4 weeks, with Xmas in between. So I will pay the correct amount of tax this year without any adjustments being carried over. I stopped having to do self-assessment when I retired, and was glad to see the back of it,
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Thrugelmir on 09/02/2024(UTC)
soulman
Posted: 14 January 2024 15:59:30(UTC)
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It's straightforward to use the HMRC tax portal and the "Add missing investment income" option. I've recently updated this (once all my dividends for this tax year were known). They amended my tax code within about 4 weeks, with Xmas in between. So I will pay the correct amount of tax this year without any adjustments being carried over. I stopped having to do self-assessment when I retired, and was glad to see the back of it,
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Stephen B.
Posted: 14 January 2024 16:08:19(UTC)
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What hmrc would like to do is adjust your tax code if it expects the income to recur, but that isn't necessarily an advantage for you - it means you'll pay the tax sooner and you may still have the hassle of reporting the actual amount if it varies significantly, as dividends often do.
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JayW
Posted: 14 January 2024 16:14:23(UTC)
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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.
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bearcub on 09/02/2024(UTC)
Ian Eccles
Posted: 14 January 2024 16:24:25(UTC)
#14

Joined: 04/07/2021(UTC)
Posts: 1,079
Welcome to the world of being a successful investor, they will have the shirt off your back.
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Aminatidi
Posted: 14 January 2024 16:38:50(UTC)
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It's 2024 this all sounds archaic in how manual it is 😲
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