Directors Dividend payment - HMRC basic PAYE tools

Morning We are wanting to pay a director a dividend in respect of profits earned in 23/24 tax Year Question 1 - how do we make the dividend payment in the Basic PAYE Tools software (the director is also an employee)? We can't see a section in the "Add employee payment" part of the software to make the dividend payment. Question 2 - as this relates to tax year 23/24 - is their dividend allowance £1,000 or, since it will be paid in 24/25 tax year, is it £500 Question 3 - The Director, in tax year 23/24, earned significantly less than the Basic rate level and used their full tax free allowance. If the answer to Q2 is allowance = £1000, would a £10k dividend payment be calculated as Dividend = £10,000 Tax to be paid on = £9,000 at 8.75% = £787.50 Payment = £10,000 - £787.50 = £9,212.50 If the answer to Q2 is allowance = £500, would the calculation be Dividend = £10,000 Tax to be paid on = £9,500 at 8.75% = £831.25 Payment = £10,000 - £787.50 = £9,168.75 Thankyou

Hi,

You would not report dividend payments through the payroll as they are not treated the same way employment income is. You would pay this and report it through the company accounts and the director would report it through Self Assessment.

Thank you.