Full time employee dividend info

haiksuresh

Dear Members,
I was very new to this forum, I need your help in finding details. I was a full time employee and will take salary and tax will be deducted when i took salary. But my employer used to give dividend as a bonus [overtime money + bonus based on company profit] at the end of the year. Here they mentioned me that, they already paid corporation tax on that money so, no action taken by me. There is no tax taken on my bonus amount and nothing was mentioned in P60.

As i dont have UTR number, And never done any self assessment. I called HMRC to esquire is there any pending tax on behalf mine, they confirmed me that nothing was found on my record.

Near future i was applying my ILR, I have all 5 years P60's . My employer was not given any document for dividend given by them. So i would like to request all your valuable suggestion, is everything was correct, what our employer was doing ?

1) what ever my employer was doing correct ? or not ?
2) What kind of documents i need from my employer for dividends ?
3) Am i required to do a self assessment ?
4) If my employer was not doing correct? what steps i need to take to fix the problem for my ILR application.


Thanks & Regards,
Suresh

Darksparkle

A dividend is paid to company shareholders, are you a shareholder?

haiksuresh

Thanks a lot for your quick reply.
I am not sure whether shareholder or not ? If i am a share holder then is it legal to pay dividend ?. Am i required to do a self assessment ? . Is it required to pay tax on dividend ?

Darksparkle

If you are a shareholder (you really should be aware of you are or not) then paying a dividend is fine, although you should be provided with a certificate/voucher to confirm the amount paid.

Whether you should be registered for self assessment/pay further tax depends on your income.

What is your taxable income for the year and how much is the dividend?

Have you tried looking at the gov site?

https://www.gov.uk/tax-on-dividends/overview

The rules on tax on dividends is also changing for 2016/17 onwards.

https://www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet

haiksuresh

This was happened in 2012/13 year. My gross salary was 30K and paid NI and tax which was shown in P60. But my employer was not given any dividend voucher, Just a formal email. And i have not done any self assessment because i am a full time employee. When i called HMRC they told i was not required to do a self assessment. Please suggest what can i do now. I was planning to apply ILR some time this year end. So i would like to fix if any thing mistake happened by my employer or by me.

Please help me.

Thanks,
Suresh

Darksparkle

haiksuresh wrote: »

This was happened in 2012/13 year. My gross salary was 30K and paid NI and tax which was shown in P60. But my employer was not given any dividend voucher, Just a formal email. And i have not done any self assessment because i am a full time employee. When i called HMRC they told i was not required to do a self assessment. Please suggest what can i do now. I was planning to apply ILR some time this year end. So i would like to fix if any thing mistake happened by my employer or by me.

Please help me.

Thanks,
Suresh

Sorry not sure what you mean by apply ILR?

Unless you know if you are a shareholder or not, there isn't much advice I can give.

sheramber

Darksparkle wrote: »

Sorry not sure what you mean by apply ILR?



Indefinite Leave to Remain?

booksurr

haiksuresh wrote: »

This was happened in 2012/13 year. My gross salary was 30K and paid NI and tax which was shown in P60. But my employer was not given any dividend voucher, Just a formal email. And i have not done any self assessment because i am a full time employee. When i called HMRC they told i was not required to do a self assessment. Please suggest what can i do now. I was planning to apply ILR some time this year end. So i would like to fix if any thing mistake happened by my employer or by me.

Please help me.

Thanks,
Suresh

please can we make sure you are using the correct words as we are trying to help buy you have not answered key questions !
since you use both the word "bonus" and the word "dividend" are you certain you understand the different meanings as for tax purposes they are very different.

if you hold shares in a company then you are entitled to receive a dividend. QUESTION: Do you have any document, e mails or other evidence showing that you hold a number of shares????

if you do not can you ask the company to confirm in writing how many shares you hold
if you genuinely received a dividend then providing it was less than about £12,000 you would be below the basic rate tax threshold for 12/13 and would not have to pay any further tax. QUESTION: how much "dividend" did you get?

if you do not hold shares then the company cannot pay you a dividend. If they paid you a "bonus" then it must have been paid via payroll or the company is guilty of tax evasion. No company is going to make such a basic mistake as they will be easily discovered. If they have paid you a "bonus" (NOT a "dividend") and you have not paid any tax on it, then both you and the company have a major problem!