Paid Tax at source on dividends. How far can I back claim if at all?

Jeffmusicals

I have some company shares in a share save scheme and every year receive dividends of around £700 which tax
appears to be deducted from. I am a higher rate tax payer with only one job and don’t normally complete a tax return. I note that there is a dividend tax limit which means I can earn £1000 (I think!) without paying tax on them. Can I claim this tax back and how would I go about doing it and for how far back. I seem to pay quite a bit of tax so I’d like to even the scores (legitimately!) if I could. Thanks in advance 

Dazed_and_C0nfused

Reclaimable tax hasn't been deducted from dividends since Gordon Browns days.

You need to give more detail as it doesn't sound likely to be as simple as you believe.

kuratowski

Are they foreign shares?

As a higher rate tax payer, are paying as much as you can afford into your pension (within the tax relief limits)?

xylophone

Can you explain exactly how this scheme works?

Are you being gifted dividend bearing shares in a UK company?

Or are these shares part of total remuneration?
https://www.gov.uk/guidance/non-cash-pay-shares-commodities-you-provide-to-your-employees

Jeffmusicals

Sorry I should have been clearer. It is a SIP and I am employed by a UK arm of a large German Insurance Company. I pay £150 every month via salary sacrifice and every year they buy shares with what I have contributed and provide matching shares free also. I then have to keep for a certain time (3-4 years) at which time I can sell without incurring any tax/NI penalty and the matching ones I can sell after 5 years I think. Last years dividend entry on the portal showed an £818 dividend but then a tax element of £216 (rounded) and the actual amount I received was just over £602. Does that help explain more? Thanks for your comments!

Thrugelmir

In Germany in total there's an effective rate of 26.375% withholding tax on dividends. 

Jeffmusicals

Thanks.
Presume that means I can’t reclaim anything? Aah well, worth an ask. Thank you for your very quick response!

MDMD

Jeffmusicals said:

Thanks.
Presume that means I can’t reclaim anything? Aah well, worth an ask. Thank you for your very quick response!

The UK-German tax treaty provides for a 15% rate of WHT, this can be then offset against any UK Tax liability on the dividends. If no UK tax is payable on the dividends then the 15% is lost.

There may be a couple of forms that you can fill in with the German share registry to get the benefit of the 15% going forwards and the make a reclaim. You employer may have some guidance on this.

meatandtwoveg

MDMD said:

Jeffmusicals said:

Thanks.
Presume that means I can’t reclaim anything? Aah well, worth an ask. Thank you for your very quick response!

The UK-German tax treaty provides for a 15% rate of WHT, this can be then offset against any UK Tax liability on the dividends. If no UK tax is payable on the dividends then the 15% is lost.

There may be a couple of forms that you can fill in with the German share registry to get the benefit of the 15% going forwards and the make a reclaim. You employer may have some guidance on this.

Is there the same treaty with Mexico. The Mexican authorities with held 10% wht.

I owe tax on Divs here in the UK. Can I offset the tax paid in Mexico against tax owed on Divs here in the UK.

Cheers

Jeremy535897

The answer is the same as before:

https://forums.moneysavingexpert.com/discussion/6289428/overseas-dividend-income#latest

meatandtwoveg

Jeremy535897 said:

The answer is the same as before:

https://forums.moneysavingexpert.com/discussion/6289428/overseas-dividend-income#latest

I do not understand the reply bud.

I owe tax here in the UK on dividend income from the same share in which the Mexican authority have withheld 10%.
It's nigh on impossible to claim it back given the covid crisis in Mexico.
Surely having paid 10% in Mexico then it's 10% less I need to pay to HMRC.