Do dividends under £500 have to be declared on a self-assessment

hallmark

I THINK they don't but the HMRC guidance wasn't totally clear, at least not to me.

The guidance on this forum is substantially clearer

DRS1

If you do a self assessment then Yes.

masonic

Unlike the capital gains section, the dividends section is not optional. If you have received any dividends you must disclose them.

hallmark

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:

https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends

You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

Dazed_and_C0nfused

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:

https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends

You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

Although earlier in that page it states,

If you send a Self Assessment tax return, you must report any dividend income on your tax return. You must do this by the deadline. 

hallmark

Dazed_and_C0nfused said:

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:

https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends

You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

Although earlier in that page it states,

If you send a Self Assessment tax return, you must report any dividend income on your tax return. You must do this by the deadline. 

Exactly!  It appears to be completely contradictory guidance.

masonic

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:
https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

The rest of the section after "If you do not send a Self Assessment tax return...", including the sentence after the two bullet points, would apply to those not filling out a tax return. Those filling out a tax return should follow the paragraph above it, starting "If you send a Self Assessment tax return...", and including the word "any".

Dazed_and_C0nfused

masonic said:

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:
https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

The rest of the section after "If you do not send a Self Assessment tax return...", including the sentence after the two bullet points, would apply to those not filling out a tax return. Those filling out a tax return should follow the paragraph above it, starting "If you send a Self Assessment tax return...", and including the word "any".

It does seem clear to me.

Although I don't understand why that guidance for people not in Self Assessment says don't bother telling HMRC about dividends that are (all) within the dividend allowance.

That just seems to mean that some people in  several groups will be able to pay less tax than they should 😳

Married Couple's Allowance
High Income Child Benefit Charge
Winter Fuel Payment Charge
Tapered Personal Allowance
Marriage Allowance 

masonic

Dazed_and_C0nfused said:

masonic said:

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:
https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

The rest of the section after "If you do not send a Self Assessment tax return...", including the sentence after the two bullet points, would apply to those not filling out a tax return. Those filling out a tax return should follow the paragraph above it, starting "If you send a Self Assessment tax return...", and including the word "any".

It does seem clear to me.

Although I don't understand why that guidance for people not in Self Assessment says don't bother telling HMRC about dividends that are (all) within the dividend allowance.

That just seems to mean that some people in  several groups will be able to pay less tax than they should 😳

Married Couple's Allowance
High Income Child Benefit Charge
Winter Fuel Payment Charge
Tapered Personal Allowance
Marriage Allowance 

Investment firms now seem to be providing HMRC information on dividends and disposals (hence the several "HMRC nudge letter" threads). I'd assumed this is dealt with in the same way as bank interest.

Dazed_and_C0nfused

masonic said:

Dazed_and_C0nfused said:

masonic said:

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:
https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

The rest of the section after "If you do not send a Self Assessment tax return...", including the sentence after the two bullet points, would apply to those not filling out a tax return. Those filling out a tax return should follow the paragraph above it, starting "If you send a Self Assessment tax return...", and including the word "any".

It does seem clear to me.

Although I don't understand why that guidance for people not in Self Assessment says don't bother telling HMRC about dividends that are (all) within the dividend allowance.

That just seems to mean that some people in  several groups will be able to pay less tax than they should 😳

Married Couple's Allowance
High Income Child Benefit Charge
Winter Fuel Payment Charge
Tapered Personal Allowance
Marriage Allowance 

Investment firms now seem to be providing HMRC information on dividends and disposals (hence the several "HMRC nudge letter" threads). I'd assumed this is dealt with in the same way as bank interest.

I haven't come across this but it will be interesting to know if all the elderly pensioners with shares in British Gas etc have their dividend income reported to HMRC?

I didn't think that was a thing yet, like it has become with (the majority of) untaxed interest.

wmb194

masonic said:

Dazed_and_C0nfused said:

masonic said:

hallmark said:

Thanks, this is a good example of how IMO the HMRC guidance is often unclear:
https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year.

The rest of the section after "If you do not send a Self Assessment tax return...", including the sentence after the two bullet points, would apply to those not filling out a tax return. Those filling out a tax return should follow the paragraph above it, starting "If you send a Self Assessment tax return...", and including the word "any".

It does seem clear to me.

Although I don't understand why that guidance for people not in Self Assessment says don't bother telling HMRC about dividends that are (all) within the dividend allowance.

That just seems to mean that some people in  several groups will be able to pay less tax than they should 😳

Married Couple's Allowance
High Income Child Benefit Charge
Winter Fuel Payment Charge
Tapered Personal Allowance
Marriage Allowance 

Investment firms now seem to be providing HMRC information on dividends and disposals (hence the several "HMRC nudge letter" threads). I'd assumed this is dealt with in the same way as bank interest.

My recollection is that those threads related to dividends and disposals made via foreign brokers e.g., there were a couple re De Giro (Dutch) and from investments held in the Isle of Man so these data will have been shared via the inter country reporting that’s now in place (except with the US?).

Perhaps someone knows better but I’m not convinced that British brokers supply any data - it’s not obvious from Googling anyway.