Uk dividends and tx

dannygoulding

I am the director and sole employee of a Ltd Company and my wife is the other shareholder.
I paid her dividends totalling £4000 for tax year 2015/16, and she currently earns £30k pa at her job.
Is she required to declare this or do a self assessment, as it does not put her into the 40% tax band?
Any help greatly appreciated.

NYM

Will this article and calculator help answer your question?

Dividend Tax calculator...

xylophone

The dividends in question were paid to the OP's wife in the tax year 2015-16, before the new dividend tax allowance regime.

For the year 2015-16, if her only income was her salary of £30,000 gross and the dividends totalling £4000, then she was a basic rate tax payer for that year.

Details here of when a tax return is needed:

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

NYM

The calculator shows the position for both tax years.

xylophone

The calculator shows the position for both tax years.

Yes indeed and is a useful "ready reckoner" - I was just emphasising that the dividends OP mentioned fell within the old regime and indicating the guidance available as to the requirement to submit a return.

dannygoulding

Thanks for the help