CLICK TO CALL

Dividend tax is a tax on your share returns

In this article we’ll explain what dividend tax is, what you get taxed on, how it works and how you might be able to reclaim the tax you pay.

Dividend tax is a tiered tax, so you pay more as you earn more. It’s relevant for people who have money invested in the shares of a company.

Too busy? Here’s Dividend Tax in 30 seconds.

  • You pay 10{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579} on money from share dividends or selling shares
  • You can get 10{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579} back as a tax credit
  • Basic-rate taxpayers have no further tax to pay.
  • Non-taxpayers also have this tax deducted and can’t claim it back.
  • Higher-rate taxpayers pay dividend tax at 32.5{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579}- but after the tax credit this becomes an effective rate of 25{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579}.
  • Additional rate taxpayers pay dividend tax at 37.5{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579} but after the tax credit it’s effectively 30.6{eb1829c0e30a1976d30e69f441dfeaffbdeda68b1ad953d70966653e91c93579}.

(The nature of the problem goes here – common issues with the subject, important facts people should know.)

If you own shares in a company, you may get a dividend payment.

Only higher or additional rate taxpayers pay tax on dividends. Check what tax rate you pay.

If you don’t have tax to pay, you only need to tell HM Revenue and Customs (HMRC) about your dividends if you have to file a Self Assessment tax return.

(The answer goes here. The best way to solve the problem described above, or the best tips when doing the task above.)

Still have questions? Ready to deal with your dividend tax?

We'll answer any questions you have, or even better, we can just solve it for you so that you can get back to earning money and doing what you love.

We partner with Start Right to bring you first class business advice and strategies. visit their website start your success now...
We partner with Start Right to bring you the latest and most effective tools for starting, growing or healing your business. Whether you're ready to expand or need to turn your cashflow around we can make it happen. Why not start with some free and friendly advice, just pick up the phone or use our contact form.

If you're not sure what to do...

...give us a call
01246 563414
get some free, friendly advice.

What our clients say about us....