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How to pay tax on dividends

  • 1 min read
  • Last updated 9 Jan 2023

This article is simply 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 the tax due on your dividends, it all depends on how much you received in the relevant tax year.

Autumn Budget 2022 🍁🍂

Folks, things have changed. After November’s Autumn Budget, some changes (and freezes) to personal tax rates and thresholds have been announced, including CGT, Income Tax, National Insurance, Inheritance Tax, Dividends and more. Check out our blog to learn about the changes in detail.

If you received under £2,000 in dividends

You don’t need to do anything.

It’s tax-free.

If you got between £2,000-£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.

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