Tax on UK dividend

happyharry23

Hi,

I've received a letter from HM revenue and customs, I'm currently away so don't know what the contents of the letter is, but I do receive dividend from UK companies.

For Tax year 2015 I earned £336.73 with a 'tax credit' of £37.41

For Tax year 2014 I earned £125.09 with a 'tax credit' of £13.90

I'm not sure what 'tax credit' is. My wages are paid through PAYE and I earn £26000.

Do I need to complete a self assessment? Would HMRC send me a letter on my dividend?

Thank you

grey_gym_sock

there's no reason why they'd write about those dividends. the 'tax credit' is a quirk of the tax system, but you don't need to pay any extra tax on dividends, since your total income is doesn't reach the higher rate threshold (c. £42,000).

(from next year, the system will be slightly different. the 'tax credit' will disappear. but there will still be no extra tax to pay on dividends, providing you receive less than £5,000 in dividends.)

Scarpacci

Could the letter just be your annual statement telling you how your tax pounds are spent? These are sent to every PAYE person, I believe. I don't know how quickly they send them out, but my family received these a few weeks ago. Perhaps they're still being sent out? You could be worrying over nothing.

brewerdave

Ditto re the annual statement for 2014-5 tax year - I received mine this week and my wife got hers last week!

happyharry23

Hi, yes got back today and it was the annual statement thanks everyone x