HMRC and Dividend Income

LobsterMemory

So, last week received a Special Dividend that is over the Dividend Allowance but my total income remains at Basic Rate level.

Looked at the HMRC Do you need to fill in a Self Assessment form area which had a flow chart for the 2017-18 year which said I didn't.

For Untaxed Income it says that one must inform HMRC if you have received £5000 in dividends which I haven't.

Does that mean there's an unofficial level of tax due below which the taxman reckons it's not worth bothering with? I remember many years ago the Daily Telegraph speculated it was about £100 wbich would be a similar ballpark to 7.5% of 3000 inflation adjusted wise

Or in other words, should I 'fess up or keep schtum?

TIA

Prism

The limit for last year and this year is now £2000 not £5000. You will need to pay some tax on it I would say

LobsterMemory

Ah, so that's where the £5000 figure came from

Thanks

Dazed_and_confused

There isn't actually any "allowance" for dividends.

For the 2018:19 tax year the first £2,000 will be taxed at 0% (the dividend nil rate of tax) but in some circumstances this can mean you have additional tax to pay even though the dividends have been taxed at 0%.

The most likely situation this would happen for a basic rate payer is if they were claiming Married Couple's Allowance but for most it won't make a difference.

Tom99

Here is the detail of what you need to do:
https://www.gov.uk/tax-on-dividends

LobsterMemory

Thanks, that page had everything I needed

Shame they didn't link to it in the section I looked at