{"id":184,"date":"2019-05-29T12:58:21","date_gmt":"2019-05-29T11:58:21","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=184"},"modified":"2025-02-11T15:56:35","modified_gmt":"2025-02-11T15:56:35","slug":"how-to-pay-dividend-tax","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/investor-capital-gains-tax-returns\/how-to-pay-dividend-tax\/","title":{"rendered":"How to pay tax on dividends"},"content":{"rendered":"\n

This article is about about paying tax on dividends<\/a>. If you need to calculate how much tax you need to pay on your dividends, go here instead<\/a>.<\/p>\n\n\n\n

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.<\/p>\n\n\n<\/div> \n\n

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Dividend tax rates <\/b>in the 2025\/26 tax year. The dividend allowance is currently \u00a3500 \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Income<\/b><\/td>\nTax band<\/b><\/td>\nTax rate<\/b><\/td>\n<\/tr>\n
Up to \u00a312,570<\/span><\/td>\nPersonal allowance<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
\u00a312,571 \u2013 \u00a350,270<\/span><\/td>\nBasic rate<\/span><\/td>\n8.75%<\/span><\/td>\n<\/tr>\n
\u00a350,271 \u2013 \u00a3125,140<\/span><\/td>\nHigher rate<\/span><\/td>\n33.75%<\/span><\/td>\n<\/tr>\n
\u00a3125,140+<\/span><\/td>\nAdditional rate<\/span><\/td>\n39.35%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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If you received less than the dividend allowance<\/h2>\n\n\n\n

You don’t need to do anything.<\/p>\n\n\n\n

It’s tax-free.<\/p>\n\n\n\n

If you got up to \u00a310,000 in dividends<\/h2>\n\n\n\n
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  1. Call HMRC at 0300 200 3300<\/strong><\/li>\n\n\n\n
  2. Ask them to change your tax code<\/a><\/strong> – HMRC will take the tax from your salary or pension<\/li>\n\n\n\n
  3. You can also pay through a Self Assessment tax return if you prefer.<\/li>\n<\/ol>\n\n\n\n

    If you dividends are more than \u00a310,000<\/h2>\n\n\n\n

    In this case, your only option is to file in a Self Assessment tax return.<\/p>\n\n\n\n

    Then you’ll pay the tax on dividends just like you would any other income tax that you pay through a tax return<\/a>.<\/p>\n\n\n\n

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