Dividends

[Bazile]

I have been asked if dividends are paid net of tax or gross 

[Hopkirk]

Who asked?

[barry1010]

Who has asked you?

[Bazile]

A friend 

[Buenchico]

Share dividends are paid gross.  (Confirmation here, if required: https://www.charles-stanley.co.uk/insights/commentary/how-much-tax-on-dividend-income ).

General info here:
https://www.gov.uk/tax-on-dividends

[Bazile]

This lady didn't realise that dividends  were paid gross and has always just paid the cheques into her bank account she said 

What shall I advise her to do about tax when  I next speak to her  ?

[Buenchico]

^^^ From my gov.uk link above:
"You do not need to tell HMRC if your dividends are within the dividend allowance for the tax year".

So, if the dividends that the lady has been receiving have never exceeded the annual allowances for the relevant years, she needn't do anything at all.  (See link for the actual allowances).

Otherwise she should see 'Pay tax on up to £10,000 in dividends' or 'Pay tax on over £10,000 in dividends', as appropriate, in the link.

[Bazile]

What does she do for years before April 2016 ?

[Buenchico]

^^^ Start here:
https://www.gov.uk/tax-on-dividends/previous-tax-years

[Bazile]

What if she no longer  has the information as to what was paid in  dividends for previous years ?

 

[Buenchico]

^^^ If it was me, I'd simply keep very quiet about it!

[Bazile]

Chris

Even if she could find information for some  dividend payments ?

[Buenchico]

^^^ She could always seek the information from the company that paid the dividends to her.

[Bazile]

Perhaps it's best she just  keeps quiet about it  as you say ,rather than opening a can of worms .

[Bazile]

I wonder if there are other people in this situation , who don't realise it ?