How to pay tax on dividends

This article is about about paying tax on dividends. If you need to calculate how much tax you need to pay on your dividends, go here instead.

When it comes to paying tax on your dividends, it all depends on how much you got and in which tax year you got it.

If you received under £500 in dividends (2024/25)

You don’t need to do anything.

It’s tax-free.

If you got between £1,000-£10,000 in dividends

1. Call HMRC at 0300 200 3300
2. Ask them to change your tax code – HMRC will take the tax from your salary or pension
3. You can also pay through a Self Assessment tax return if you prefer.

If you dividends are more than £10,000

In this case, your only option is to file in a Self Assessment tax return.

Then you’ll pay the tax on dividends just like you would any other income tax that you pay through a tax return.