2016/17 Self Assessment & Dividends
Enterprise_Warrior
Registered Posts: 77
Hi Everyone
As we are yet to complete a Self Assessment return for this tax year, I am still unsure as to how the tax will work on the dividends above £5k.
If a person only used £8,164 of their £11k personal allowance for PAYE, are they allowed to take up to £7,836 in dividends before paying tax on the rest or will they only get £5k tax free and lose the rest of the personal allowance?
Thanks
EW
As we are yet to complete a Self Assessment return for this tax year, I am still unsure as to how the tax will work on the dividends above £5k.
If a person only used £8,164 of their £11k personal allowance for PAYE, are they allowed to take up to £7,836 in dividends before paying tax on the rest or will they only get £5k tax free and lose the rest of the personal allowance?
Thanks
EW
FMAAT, AAT Licensed Accountant and CIMA finalist
0
Comments
-
If the individual's income is £8,164 the first £2,836 of dividends are covered by the PA and another £5,000 of dividends are taxed at 0%.
See example 3 here.
Hope this helps.2 -
Thanks Marie. Was hoping that was the answer.FMAAT, AAT Licensed Accountant and CIMA finalist0
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