Declaring Dividend to HMRC

Be_Happy

Help for novice shareholder please.

I get dividend from 2 small share holdings and an investment trust. Total dividend around £190 last financial year.

Do I have to notify Tax Office, or are they notified automatically from dividend providers?

aesthetic

Everyone is allowed up to 2k in dividends tax free aren't they? As long as you're not in the top tax bracket (I think -- I too am a novice).

ColdIron

For £190 you don't need to notify them as you are within your annual allowance. Broadly your tax bracket doesn't affect your allowance but it would determine what tax you would have to pay (which you don't)
https://www.gov.uk/tax-on-dividends

webjaved

Be_Happy wrote: »

Help for novice shareholder please.

I get dividend from 2 small share holdings and an investment trust. Total dividend around £190 last financial year.

Do I have to notify Tax Office, or are they notified automatically from dividend providers?

Nope. :money:

Be_Happy

Thanks. I had heard of dividend allowance but thought this had been removed now.

Dazed_and_confused

The dividend "allowance" is actually a 0% tax rate.

If you have used all of your Personal Allowance elsewhere then all dividend income would be taxed however the first £2,000 (in the current tax year) would be taxed at 0%.

For most people this means there is no increase in their tax liability but there are a few situations where income taxed at 0% does actually increase your overall tax liability.

So if any of the following are relevant to you you could owe a small amount of additional tax,

Married Couple's Allowance

Marriage Allowance and income (including the dividends) is above your basic rate tax threshold

High Income Child Benefit Charge

Adjusted net income (including the dividend income) is greater than £100,001

Be_Happy

Thanks. Luckily none of these apply to confuse situation.