How to pay tax on dividends

This article is simply about how to pay tax on dividends.

If you need to calculate how much tax you need to pay on your dividends, go here.

When it comes to paying the tax due on your dividends, it all depends on how much you received in the relevant tax year:

If you received less than £2,000 in dividends

You don't need to do anything. It's tax free.

If you received less than £10,000 in dividends

  1. Call HMRC at 0300 200 3300
  2. Ask them to change your tax code - the tax will be simply taken from your salary or pension

If you already need to fill a self asssessment tax return then you don't need to call them, just put it in your tax return.

If you received more than £10,000 in dividends

In this case you’ll need to fill in a self assessment tax return (it doesn't matter if your other income is only PAYE).

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

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