Declaring dividends on self assesment?

Randvegeta

Since dividends are paid NET of TAX, is there a need to declare them on your TAX return? Particularly when they are NOT ISA wrapped?

If you do need to declare it, why do they bother taking out TAX from the source if you're doing the work any way.

Of course I am speaking of those who fall under the "basic" TAX rate.

le_loup

Yes you do, there is a specific area on the form for them.
The reason ... because it affects the total income which may have an effect on your tax rate.

System

Because HMRC don't know if you fall under the basic rate of tax until you submit your tax return, and so don't know if you owe more tax on your dividends than has already been deducted at source.

Randvegeta

Pam17 wrote: »

Because HMRC don't know if you fall under the basic rate of tax until you submit your tax return, and so don't know if you owe more tax on your dividends than has already been deducted at source.

So does that mean if your total income is below the TAX free allowance you can get a refund on the TAX?

Why don't they make it so you pay TAX at the end of the TAX year if they are going to make you go through the hassle of putting it on your TAX return?

Also, what happens when you leave the country? Do you still have to fill a UK TAX return if you no longer live here?

System

Randvegeta wrote: »

So does that mean if your total income is below the TAX free allowance you can get a refund on the TAX?

Tax credit deduction from dividens is "Notional Tax" and so can't be refunded.

And they don't allow you to pay at the end of the year because they need taxes coming in regularly to pay for all the services your taxes pay for.

chrismac1

On reflection , though, considering the utter shambles HMRC have made of PAYE, maybe he has a point......

BoGoF

chrismac1 wrote: »

On reflection , though, considering the utter shambles HMRC have made of PAYE, maybe he has a point......

Every chance to put the boot in eh......but seriously how has your dig helped the OP. This from the man who can't interpret basic tax legislation, but yet I AM AN ACCOUNTANT

chrismac1

Well he may not have hit the mark with this specific one, but in my view he's made some valid criticisms of the UK tax system. All sorts of information is required by HMRC - and if the person is on tax credits then they require it TWICE for some stupid reason - and over the past few years they've made a right shambles of sorting out this information.

On another thread the guy has been jumped on right left and centre fro looking for the best way to keep his UK tax bill down. I am basically on his side, so it wasn't so much a dig at HMRC - much as I enjoy that pastime! - as a bit of moral support.

Randvegeta

chrismac1 wrote: »

Well he may not have hit the mark with this specific one, but in my view he's made some valid criticisms of the UK tax system. All sorts of information is required by HMRC - and if the person is on tax credits then they require it TWICE for some stupid reason - and over the past few years they've made a right shambles of sorting out this information.

On another thread the guy has been jumped on right left and centre fro looking for the best way to keep his UK tax bill down. I am basically on his side, so it wasn't so much a dig at HMRC - much as I enjoy that pastime! - as a bit of moral support.

Cheers for the support Chrismac1. You know, despite my, and I suspect your, aversion to much of the TAX system, I still care deeply for this country. For example, while watching BBC News last week, I saw reatail sales were down. I therefore decided to get up and buy some thing from the high street! I only wanted 1 pair of shoes, but the depressing news and the nice people at the shop encourages me to buy 3!

Alas, I can't spend too much given my unique situation :-(.

Any way, back to the question, I assume having stocks and shares wrapped in an ISA would mean you DONT have to declare your income on your TAX return.

But in my case, where I intend to leave after a year or so, does one that is living abroad still have to file a UK TAX return if they have income through UK dividends?

suso

chrismac1 wrote: »

Well he may not have hit the mark with this specific one, but in my view he's made some valid criticisms of the UK tax system. All sorts of information is required by HMRC - and if the person is on tax credits then they require it TWICE for some stupid reason - and over the past few years they've made a right shambles of sorting out this information.

On another thread the guy has been jumped on right left and centre fro looking for the best way to keep his UK tax bill down. I am basically on his side, so it wasn't so much a dig at HMRC - much as I enjoy that pastime! - as a bit of moral support.

more rubbish

what valid criticisms has been made in this thread,

the question was does they need to be declared on the tax return.

simple answer yes.

tax credit on dividends - non refundable

wheres the shambles?

give it up chrismac1 your useless

jennifernil

I am not up on all the "ins and outs" of tax, but as I understand it, you can pay into an ISA while you are living in UK. Once you leave UK you cannot add to it, but you can keep existing ISA(s).

Anything ISA is NOT entered on anyones tax return, so after you leave you would not need to declare it, so no tax return needed IMHO.