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Tax on Dividends (& interest) pre 2016
Posted: 05 June 2018 09:50:38(UTC)

Joined: 27/07/2010(UTC)
Posts: 35

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I retired from running my own business in 2012 and after discussion with HMRC they agreed that as I was only taking State Pension and one SIPP in Drawdown it would save a lot of effort to just put me on PAYE rather than having to do self-assessment annually.

I've now just realised that somehow they are continuing to include a dividend and savings interest amount totalling £512 in their calculations, quite why I don't know. I suspect a carry over from my self-assessment which was carried out by my accountant. I've ascertained this is made up of £200 dividends and £312 in interest.

Tax on dividends always confused me and still does now I'm out of the regular need to be invovled. I hold about £10,000 worth of shares, 80% being Standard Life, and the shares (annoyingly) include about £500 of Santander.

I just use my tax free amount, in other words I'm well within being a basic tax payer. Apart from Santander who keep changing the way they pay (one year it's dividend and another it is extra shares) all the shareholding have tax credits.

I can categorically tell HMRC I don't have any untaxed interest so that should be a few years of £312@20% refund due.

Can someone throw some light on what, if any tax, I should pay on the notional £200 dividend for those years? I've not got a ready summary of actual dividend but on £10k it's not going to be massive.

And before anyone brings it up, yes I know the rules have since changed and simplified matters,but I've still got four tax years ending 2013 through to 2016 to be dealt with.

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