Santander dividends and Self assessment

Imnoexpert_2

Can anyone help with advice about where  (and how) on my self assessment form I enter the dividends I receive from Santander?

I got £62.94 dividend and paid £14.76 tax. It used to be called 'withholding tax' but doesn't seem to be now.

Other dividends push me over the £500 limit so I pay diidnd tax at the basic rate  8.75%.

The SA form and the guidance from HMRC and from Santander has gone over my head. 

It's a small amount - and hardly worth the bother, but I like to get these things right!

Thanks

Nomunnofun1

Imnoexpert_2 said:

Can anyone help with advice about where  (and how) on my self assessment form I enter the dividends I receive from Santander?

I got £62.94 dividend and paid £14.76 tax. It used to be called 'withholding tax' but doesn't seem to be now.

Other dividends push me over the £500 limit so I pay diidnd tax at the basic rate  8.75%.

The SA form and the guidance from HMRC and from Santander has gone over my head. 

It's a small amount - and hardly worth the bother, but I like to get these things right!

Thanks

Foreign dividends (up to £500)? 

Strummer22

Imnoexpert_2 said:

Can anyone help with advice about where  (and how) on my self assessment form I enter the dividends I receive from Santander?

I got £62.94 dividend and paid £14.76 tax. It used to be called 'withholding tax' but doesn't seem to be now.

Other dividends push me over the £500 limit so I pay diidnd tax at the basic rate  8.75%.

The SA form and the guidance from HMRC and from Santander has gone over my head. 

It's a small amount - and hardly worth the bother, but I like to get these things right!

Thanks

Are these shares the ones listed on the UK stock exchange (LON: BNC)? If so, I believe you just put the dividend income in 'dividends - other' as they're not for a UK company. [NB if this is the case, why not hold them in an ISA and pay no dividend tax or capital gains tax?]

If you receive dividends in foreign currency this would go under 'foreign dividends'. 

wmb194

Strummer22 said:

Imnoexpert_2 said:

Can anyone help with advice about where  (and how) on my self assessment form I enter the dividends I receive from Santander?

I got £62.94 dividend and paid £14.76 tax. It used to be called 'withholding tax' but doesn't seem to be now.

Other dividends push me over the £500 limit so I pay diidnd tax at the basic rate  8.75%.

The SA form and the guidance from HMRC and from Santander has gone over my head. 

It's a small amount - and hardly worth the bother, but I like to get these things right!

Thanks

Are these shares the ones listed on the UK stock exchange (LON: BNC)? If so, I believe you just put the dividend income in 'dividends - other' as they're not for a UK company. [NB if this is the case, why not hold them in an ISA and pay no dividend tax or capital gains tax?]

If you receive dividends in foreign currency this would go under 'foreign dividends'. 

No, it's still a dividend from a foreign company. It's only in the foreign pages section that the OP will be able to claim relief against the Spanish withholding tax that's been deducted (if they want to claim it, if not and total foreign dividends are less than £500 then they can include alongside UK dividends as shown in the post above).

There are quite a few companies listed in London which are domiciled in Jersey and Guernsey that are classified as foreign but their functional currency is sterling and their dividends are paid in sterling.

TheGreenFrog

Not sure wht the current rates are but Spanish witholding was about 20% and you could only claim a 10% deduction on your UK return.

wmb194

TheGreenFrog said:

Not sure wht the current rates are but Spanish witholding was about 20% and you could only claim a 10% deduction on your UK return.

19% and 10%. In theory you can reclaim the balance from the Spanish tax authority but good luck with that.

Nomunnofun1

TheGreenFrog said:

Not sure wht the current rates are but Spanish witholding was about 20% and you could only claim a 10% deduction on your UK return.

You have to be careful with that. You can only claim up to the UK tax due ON THAT SOURCE OF INCOME’. 

If there is no tax due, perhaps covered by the dividend allowance, no foreign tax credit is available for set off. 

Many believe that, because are liable to tax elsewhere, that they can claim TCR. 

Imnoexpert_2

Thanks for your replies.

I now don't feel so bad about being confused. I got these shares iirc from the Abbey National sale. So millions must have had them and lots like me must have them still. 

I am using the online not paper form and when I entered the figures correctly it told me there was an error. I now realise that if I don't enter the "Tax taken off foreign dividends. "Enter the sterling equivalent: (optional)" box figure the warning goes away. That was the bit that made me think I was doing it wrong.

The result of this though is that I end up paying 'Spanish Taxof 19% AND UK tax at 8.75% (I'm basic rate). It hadn't sunk in that I would be double taxed, and it doesn't seem fair. Have I got that right?

Incidentally my ISA is full so I can't put them in that - don't know how easy that woud be to do anyway, and then there is capital gains unless  bed and ISA.....

As you can see I'm still confused. I bet most people just don't declare it. How would HMRC find out?

Nomunnofun1

You clearly doing something wrong with the entries - you must enter the foreign tax paid (sterling equivalent)

sausage_time

I am still (very) confused.  See the text below from...

https://community-origin.hmrc.gov.uk/customerforums/sa/ca8be789-4703-f011-a4dd-0022481bdc0b

If, however, the company reinvests the dividends by using them to purchase additional shares on a shareholders’ behalf through a dividend reinvestment plan (DRIP) (the company reinvests the shares automatically, without the shareholder having to do a thing or ever receiving the dividends physically themselves), that shareholder does not pay income tax on the reinvested dividends until they eventually sell the shares. At the point of selling the shares, capital gains tax would apply on any increase in share value since the reinvestment occurred.  

Imnoexpert_2

Thanks for the help. 1.7 million people got Abbey National/Santander shares and I'm the only one confused and keen to pay the correct tax on them (or so it seems).

Two questions before I give up?

Should I be paying Spanish Tax and UK tax?

How have I filled the form in wrong?

this is my online self assessment, with the Tax statement from santander below