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.
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Reply to: Dividend tax - tax code change
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Previously on "Dividend tax - tax code change"
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Ring up the tax office and get it changed. They are quite happy to do this.
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I had a similar experience. Just fill out this form: https://online.hmrc.gov.uk/shortforms/form/P2
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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.
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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
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Originally posted by Archangel View PostI'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
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Dividend tax - tax code change
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?
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