Tax Credit for UK dividend

happyharry23

Hi,

I've just logged into my online shares account and looked at the tax section and it reads

Tax Credit - £13.90

What does this actually mean? Do I need to fill in the pay, or has it already been taken out?

Thanks

TCA

The 10% dividend tax has already been taken off and it's to that that the tax credit refers. If you pay basic-rate tax and don't complete a tax return then there's nothing to do. If you pay basic-rate tax and complete a self-assessment return, you need to declare the dividend on your tax return, but no further tax will be due. If you pay higher rate tax, you need to declare the dividend and further tax will be payable.

happyharry23

Excellent, thank you for your help.

coyrls

TCA wrote: »

The 10% dividend tax has already been taken off and it's to that that the tax credit refers. If you pay basic-rate tax and don't complete a tax return then there's nothing to do. If you pay basic-rate tax and complete a self-assessment return, you need to declare the dividend on your tax return, but no further tax will be due. If you pay higher rate tax, you need to declare the dividend and further tax will be payable.

No tax is deducted from UK dividends before they are paid to investors. See: http://www.theaic.co.uk/sites/default/files/AICTaxationofDividendsConsumerguide.pdf

lpgm

I think more sites get dividend tax wrong than right. Including our very own MSE.