Question about tax on share dividends

Gazania

Hi,

I am a higher rate taxpayer, but through using my company's salary sacrifice my net income is below 42.K. I receive dividends on some shares on a few hundred pounds a year.

I don't complete a tax return (never done one) - should I be doing so because of the dividends? Assuming the sal.sac is dealt with via PAYE.

All my savings are tax free and I have no other sources of income.

Thanks for your help,

EJ

xylophone

http://www.hmrc.gov.uk/taxon/uk.htm - try here.

pjclar02

Ir depends on how much the additional dividend income is. HMRC may be able to collect the tax due on the dividends through your PAYE code.

I would call HMRC and tell them the amounts involved and they will either amend your tax code or advise you to register for self-assessment.

xylophone

http://www.guardian.co.uk/money/2011/feb/06/higher-rate-taxpayers - might be of interest.

Gazania

Thank-you for you replies. I've never had much more than about £500 a year from these dividends.

I'll give the tax office a ring tomorrow. The thing is I've been a higher rate taxpayer for a few years and have only just realised about this. Hope I'm not going to get in trouble with them! Luckily all the records are on-line so it will be easy to get the evidence.

EJ