A Reminder on Tax On Dividends...

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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.

Rachael Savage