Dividend tax - tax code change

[Archangel]

I've just received my tax code notice (p2)

Personal allowance £11,000
Less dividend tax £4,904 see note 2
Total tax free amount £6,096

Now I've no idea where the 4904 comes from, note 2 helpfully says "this is to collect the basic rate of tax due on your dividend income"

Would it be too much to ask how the figure is arrived at?

I.e. As you took £22,000 in dividends last year then 22,000 - 5,000 * 7.5% = blah blah

Isn't this what they do with company cars?

Tossers

[jamesbrown]

I've just received my tax code notice (p2)

Personal allowance £11,000
Less dividend tax £4,904 see note 2
Total tax free amount £6,096

Now I've no idea where the 4904 comes from, note 2 helpfully says "this is to collect the basic rate of tax due on your dividend income"

Would it be too much to ask how the figure is arrived at?

I.e. As you took £22,000 in dividends last year then 22,000 - 5,000 * 7.5% = blah blah

Isn't this what they do with company cars?

Tossers

Yeah, not the first example I've heard about. Putting aside the calculations, which are completely wrong, you can get them to correct this and make the payment on account with your SATR (Jan and July), rather than allowing collection via your tax code. They are utterly incompetent when it comes to tax code changes.

[rwkay1984]

I have had the same problem

Personal Allowance £11,000
Less Untaxed Interest £6
Less Dividend Tax £9102
Total Tax Free Amount £1892

Hopefully this is wrong. I've been sulking all night until I read this thread, here's hoping it's wrong

Richard

[rb621]

Same here...HMRC reckon £3765 as my "LESS DIVIDEND TAX" figure.

They should not be trying to collect it this way anyway. My accountant says if you are doing SATR, it should be collected via SATR which most of us will be doing.

Its just completely a huge big mess....or maybe I'm about to have a fantastic lucrative year ahead.

[swamp]

I had a similar experience. Just fill out this form: https://online.hmrc.gov.uk/shortforms/form/P2

[nozmeister]

Ring up the tax office and get it changed. They are quite happy to do this.

[ASB]

The logic, for want of a better word, is to avoid nasty surprises. The fact they get the money a year earlier is pure coincidence.

Consider the normal person this applies to, a wage slave with dividend income. The tax code they end up with is intended to collect the anticipated tax. A lot of folk like this as they are not writing cheques to the revenue.

Personally I always tick the 'dont mess with my tax code' box. I have yet to receive a revised notice. Be interesting to see if they are that joined up, I doubt it.