A Reminder on Tax On Dividends...
From 6 April 2016 the rules on tax on dividends changed .. the first self assessment tax returns that these rules impact are the 16/17 returns which are the ones now being completed, thought about or being ignored until the end of January when panic will set in!!
I first blogged about these back in December 2016, but that’s a long time ago .. so, as a reminder ..
The first £5,000 of dividends are tax free but above that they are taxed as follows:
- Basic rate band - 7.5%
- High rate band - 32.5%
- Additional rate band - 38.1%
Depending on the amount of tax due, payments on account might also come into play too.