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Tax Free Dividend Allowance
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mysk_girl
Posts: 804 Forumite
in Cutting tax
Hi, is the tax free dividend allowance of £1000 on top of the personal allowance?
I have net taxable income of £56k and receive £1k dividend on top. I have to partially repay the child benefit. This year is the first time I've been over the lower limit.
I have net taxable income of £56k and receive £1k dividend on top. I have to partially repay the child benefit. This year is the first time I've been over the lower limit.
Done my tax return online and it is calculating that I owe 70% of the CB back and an additional £400 for 40% on the dividend? HMRC helpline said the tax free dividend allowance only applies if you have no other income but surely in that scenario I'd have my personal allowance anyway...
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Comments
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There is no allowance for dividends.
The first £1,000 will be taxed at 0% (the dividend nil rate) but it's still taxable income and forms part of your Adjusted Net Income.
And your ANI is what determines any HICBC.2
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