No dividend tax ???

[hgllgh]

Those nice people at HMRC don't seem to want to take any dividend tax from me...

Just done my self assessment tax return online.
Declared my dividends for the year no problem, but when it does the tax calculation it shows the 10% div tax but then credits it straight back giving 0% tax

So I've taken the net dividends over the year, but the 10% tax is still sitting in my business account.

How do you pay dividend tax then?

[Sockpuppet]

Erm...that 10% is to represent the amount the business has paid as corporation tax as dividends can only come from profit on which a tax is already paid.

So as long as you have paid your CT then blow it cheap hookers.

[VectraMan]

Erm...that 10% is to represent the amount the business has paid as corporation tax as dividends can only come from profit on which a tax is already paid..

I think you're even more confused than hgllgh.

10% tax credit on dividends. With 10% tax that equals 0% tax. Nothing to do with CT.

[Bluebird]

You need to be very careful here.

If you have declared divis of say £20,000, but only paid 90%of that into your personal a/c you need to do some adjustments otherwise the tax vouchers and shareholder minutes won't tie up.

For more advise - either ask an accountant of post what you've paid / declared etc...

[hgllgh]

Pasted in the relevany part of the tax calc below.
The Income Tax charged below is the div tax at 10% plus saving and PAYE tax.
But then as you can see it credits it straight back on the next line??

Is div tax part of corp tax then?

Amount Percentage Total

Dividend income etc. £ 25,750.00 @ 10% £ 2,575.00

Taxable income £ 30,014.00

Income Tax charged £ 3,249.46

minus non-payable tax credits on Dividends £ 2,575.00

Income Tax due after dividend tax credits £ 674.46

[VectraMan]

So what's the problem?

[Bluebird]

Pasted in the relevany part of the tax calc below.
The Income Tax charged below is the div tax at 10% plus saving and PAYE tax.
But then as you can see it credits it straight back on the next line??

Is div tax part of corp tax then?

Amount Percentage Total

Dividend income etc. £ 25,750.00 @ 10% £ 2,575.00

Taxable income £ 30,014.00

Income Tax charged £ 3,249.46

minus non-payable tax credits on Dividends £ 2,575.00

Income Tax due after dividend tax credits £ 674.46

Not sure what you mean here.
If you have paid yourself £25,750 in divis for a FULL financial year, then the Tax Due on that is £2575, but you also get a Tax Credit on the amount of 10% so there is no tax to pay.

If you have IT due I can only summise that the period does not cover a full year, and therefore the threshehold where the lower amount of tax has been charged has been breached.

Your higher rate tax bill therefore = £3249, less the £2575 gives you a tax bill of £674.


Nothing to do with Corp Tax - this is paid BEFORE you pay dividends.

[xoggoth]

Only the std rate of tax on divis is assumed covered by the CT already paid. There should be more to pay if you are higher tax bracket.

Good idea to check divis against payments near end of tax year but there is not actually a legal obligation to minute normal dividends as I recall. The full list of what it is is mandatory to record is on the Co Hse site. Not that anyone will ever read them anyway.

[hgllgh]

So what's the problem?

Well .... as far as i can make out, I'm not paying any tax on my dividends

[VectraMan]

Well .... as far as i can make out, I'm not paying any tax on my dividends

Well if you insist, send me a cheque for the 10% and I promise I'll get it to the right people.

But the rate the government want is 0%.