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Confused by dividends for CTC calculations
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psycrow57
Posts: 135 Forumite
I'm struggling a bit with declaring dividends for our child tax credits calculation.
Basically, I submitted estimated figures for 2016-2017 which included my accurate salary for the year and the previous year's dividends amount (2015-2016).
Because the dividend amount isn't calculated until after the tax year is done, I don't know what the amount is or receive it until the following tax year. Say for example the dividend amount was £4000 for 2015-2016, I didn't get that information or any of the money until late 2016, which is actually 2016-2017, so I didn't get the income until then.
So my question is, is it correct to use the 2015-2016 dividend amount for 2016-2017 income, since that's when I got it? Or do I need to give the 2016-2017 figure once it's calculated, even though I won't get that money until this tax year? I tried to explain it to the person on the phone and they had no clue what I was saying.
Basically, I submitted estimated figures for 2016-2017 which included my accurate salary for the year and the previous year's dividends amount (2015-2016).
Because the dividend amount isn't calculated until after the tax year is done, I don't know what the amount is or receive it until the following tax year. Say for example the dividend amount was £4000 for 2015-2016, I didn't get that information or any of the money until late 2016, which is actually 2016-2017, so I didn't get the income until then.
So my question is, is it correct to use the 2015-2016 dividend amount for 2016-2017 income, since that's when I got it? Or do I need to give the 2016-2017 figure once it's calculated, even though I won't get that money until this tax year? I tried to explain it to the person on the phone and they had no clue what I was saying.
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Comments
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Assuming this is a final dividend (and not an interim) - what date was the 2015/16 one approved by the shareholders? What date is on the voucher?
Did it go on your tax return for 2015/16?
If so, tax credits work the same way. So you declare everything for the same tax year. You shouldn't mix tax years.
Your 2016/17 income needs to include your earnings plus any dividends that are on the tax return for 16/17. You have until 31 January 2018 to confirm that estimate as long as you did tell them your figures were estimated.
IQ0
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