Shares problem?

Pandee

Hello-I'm new to the Forum.
Back in the day when everybody was buying Shares (BP etc..) I bought some and also in a family members name..and they gave me the Divvy money-paid into my savings account. The Dividends were not that much to be honest but what would the Tax man think? :eek:

vectistim

They're paid post basic rate tax, so it's only an issue if you're a higher rate tax payer, or if you do self-assessment they should be included on there.

dzug1

Assuming neither you nor the relative are higher rate (40%) tax payers he won't care as far as income tax is concerned.

Pandee

Thanks...just wondering if I call an accountant/independant tax advisor...do you know if the initial call is confidential or will they go to HMRC...bit worried as I don't want to drop myself in it and cause more problems than needed!:(

Wilkins

Pandee wrote: »

Thanks...just wondering if I call an accountant/independant tax advisor...do you know if the initial call is confidential or will they go to HMRC...bit worried as I don't want to drop myself in it and cause more problems than needed!:(

If you think you may have tax to pay then just do an online tax assessment:


http://www.hmrc.gov.uk/


You need to register first, though.

eskbanker

Given the anonymity on here anyway, why not just post some further info on how much the annual dividend income is, and whether or not that, added to your other income, is enough to tip you into higher rate tax?

grey_gym_sock

if you go to an accountant and say that, if it turns out you should have paid more tax, you want to pay it but minimize any penalties, then they will help you do that. e.g. they'll make sure you tell HMRC about it properly, rather than reporting on you behind your back.

OTOH, accountants may not be happy to go along if you ask them to help deceive HMRC. but you wouldn't be doing that, right?

grey_gym_sock

BTW, you might get more responses from accountants on the "cutting tax" board.

Pandee

No I don't want to deceive. Thanks for the tips.

jimjames

Pandee wrote: »

No I don't want to deceive. Thanks for the tips.

Dividends are paid with basic tax taken off so unless you are a higher rate taxpayer there is nothing more to pay.

Depends what sort of amounts you are talking about. Owning £100,000 of shares would generate very different returns from £1000.