Tax declaration due to investments

John464

I have kept my capital gains just under my allowance, so no tax to pay there.
My income is taxed automatically.
But calculated I have about £200 tax to pay on dividends
So registered for self assessment
It directed me to a questionnaire, which I completed, and then it said I don't need to do a self assessment
So I don't know who is wrong, me or them

TBC15

John464 said:

I have kept my capital gains just under my allowance, so no tax to pay there.
My income is taxed automatically.
But calculated I have about £200 tax to pay on dividends
So registered for self assessment
It directed me to a questionnaire, which I completed, and then it said I don't need to do a self assessment
So I don't know who is wrong, me or them

Details on what to do here https://www.gov.uk/tax-on-dividends

masonic

John464 said:

I have kept my capital gains just under my allowance, so no tax to pay there.
My income is taxed automatically.
But calculated I have about £200 tax to pay on dividends
So registered for self assessment
It directed me to a questionnaire, which I completed, and then it said I don't need to do a self assessment
So I don't know who is wrong, me or them

They are correct, you don't need to register for Self Assessment to pay the tax due on your dividends. See my earlier response: https://forums.moneysavingexpert.com/discussion/comment/77768358/#Comment_77768358

RobHT

masonic said:

John464 said:

I have kept my capital gains just under my allowance, so no tax to pay there.
My income is taxed automatically.
But calculated I have about £200 tax to pay on dividends
So registered for self assessment
It directed me to a questionnaire, which I completed, and then it said I don't need to do a self assessment
So I don't know who is wrong, me or them

They are correct, you don't need to register for Self Assessment to pay the tax due on your dividends. See my earlier response: https://forums.moneysavingexpert.com/discussion/comment/77768358/#Comment_77768358

Probably he means that he's already over 2000 pounds CGT regarding dividents for this fiscal year.

masonic

RobHT said:

masonic said:

John464 said:

I have kept my capital gains just under my allowance, so no tax to pay there.
My income is taxed automatically.
But calculated I have about £200 tax to pay on dividends
So registered for self assessment
It directed me to a questionnaire, which I completed, and then it said I don't need to do a self assessment
So I don't know who is wrong, me or them

They are correct, you don't need to register for Self Assessment to pay the tax due on your dividends. See my earlier response: https://forums.moneysavingexpert.com/discussion/comment/77768358/#Comment_77768358

Probably he means that he's already over 2000 pounds CGT regarding dividents for this fiscal year.

If he has calculated his tax is ~£200, then...

If he was a basic rate taxpayer, that would mean he has received (£200 / 7.5%) + £2000 = £4700 in dividends for this tax year.

If he was a higher rate taxpayer, he would have received (£200 / 32.5%) + £2000 = £2600 in dividends for this tax year.

Both of those figures are less than the £10,000 requiring someone to register for Self Assessment, so if he has no other reason to Self Assess, he should contact HMRC to provide details of the dividends and the tax will be collected by PAYE through an adjustment to his tax code.

jimjames

One advantage of trading inside an ISA is that you don't need to worry about CGT or income tax. If this money isnt inside an ISA yet it might be worth moving it every year to use your £20k allowance

pip895

CGT isn't too hard to calculate unless you have accumulation units.  Found that out the hard way! 
Hargreaves Lansdown give you the basic data in the Tax Centre tab - which makes it easy if you have stocks or fund income units but not much help for accumulation units.  If you have these you end up having to work your way through annual reports and even then it can be difficult to extract.  Always amazes me how well the fund houses hide it given it is presumably a not uncommon requirement.

masonic

pip895 said:

CGT isn't too hard to calculate unless you have accumulation units.  Found that out the hard way! 
Hargreaves Lansdown give you the basic data in the Tax Centre tab - which makes it easy if you have stocks or fund income units but not much help for accumulation units.  If you have these you end up having to work your way through annual reports and even then it can be difficult to extract.  Always amazes me how well the fund houses hide it given it is presumably a not uncommon requirement.

Same is true of excess reportable income on non-UK domiciled funds (which applies to most ETFs). It's useful to think carefully about the choice of investments to place inside vs outside of a tax sheltered account.

pip895

masonic said:

Same is true of excess reportable income on non-UK domiciled funds (which applies to most ETFs). It's useful to think carefully about the choice of investments to place inside vs outside of a tax sheltered account.

OOps - I have IWDG in my unwrapped investment portfolio - I naïvely assumed the income was income and the appreciation was pure capital gain.  How do you work out excess reportable income?

masonic

pip895 said:

masonic said:

Same is true of excess reportable income on non-UK domiciled funds (which applies to most ETFs). It's useful to think carefully about the choice of investments to place inside vs outside of a tax sheltered account.

OOps - I have IWDG in my unwrapped investment portfolio - I naïvely assumed the income was income and the appreciation was pure capital gain.  How do you work out excess reportable income?

Yes, it catches many out. For iShares, go to the page for the ETF in question, scroll down to Literature, See All Documents, then filter by 'Tax Information' and you should see a series of spreadsheets quoting the ERI per share and the associated notional distribution date. Looks like it is small for this fund, but not zero. Note you will need to convert from USD to GBP.