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Self Assessment - getting charged tax on less than £1k dividend

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    Self Assessment - getting charged tax on less than £1k dividend

    Current on inside IR35 and filling out my Self Assessment.
    I included a £500 dividend from ltd company and the Tax computation is including a charge on the dividend at 20%. I thought dividend allowance is £1000 for 2023/24 regardless of income so nothing to pay ?

    Online calculators are showing the same so which is HMRC site behaving different?


    #2
    Originally posted by css_jay99 View Post
    Current on inside IR35 and filling out my Self Assessment.
    I included a £500 dividend from ltd company and the Tax computation is including a charge on the dividend at 20%. I thought dividend allowance is £1000 for 2023/24 regardless of income so nothing to pay ?

    Online calculators are showing the same so which is HMRC site behaving different?
    Sounds odd. 20% isn't even a rate that would be applied to dividends.

    Double check that the 1000 isn't against employment income rather than dividend.

    Although I wonder if something odd happens if you've earned over 100k, which is where you lose £1 off your personal allowance for every £2 earned.

    Comment


      #3
      Certainly showing in the computation as Dividend. Income is over £100k.
      I came across a post on the HMRC forum with similar observation and an explaining of how HMRC pre-allocate the pots of income against Personal allowance but at the end of the thread an admin said it was wrong and to contact HMRC.

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