Dividends Income on Self-Assessment Tax

Hi, I and my wife are in the process of preparing our Self-Assessment Tax returns for the 2022/2023 tax year. We both are directors of our limited company. Our company's Corporation Tax year runs from January to December. So the dividends stated in the 2022 Corporation Tax return are the dividend amounts for January to December 2022. As our Personal Income Tax period runs from 06 April 2022 to 05 April 2023, when we declare the dividends in our 2022/2023 Self-Assessment Tax returns, which dividend amounts from below do we need to take into account? 1. Dividends declared in the Corporation Tax return for the January to December 2022 period. 2. Dividends we took between 06 April 2022 to 05 April 2023 period. Thanks in advance, 

Name removed admin 

Hi Gishan Don Ranasinghe,
Please use the dividend amount in your personal tax return that matches the dividends from the limited companies tax year.
Both cover a 12 monh period.
Thank you. 

Hi, Our company started trading in Feb 2020. Since then we submitted Corporation Tax for the Jan to Dec period as our limited company's tax year runs from Jan to Dec. But for our Self-Assessment tax returns, we did not use the dividends stated in the limited company's tax year. Instead, we used the dividends we took from April to April as the income tax period runs from April to April. According to your answer, we should use the dividends from the limited company's tax year in our Self-Assessments. But as you can see from above, we have used the dividends from April to April in our 2020/2021 and 2021/2022 Self-Assessments. Shall we resubmit the 2020/2021 and 2021/2022 Self-Assessments, so that the dividend amounts in our personal tax returns match the dividends from the limited company's 2020 and 2021 tax years? In this way, we can use dividends in the limited company's 2022 tax year to submit our 2022/2023 Self-Assessment tax return. Thanks, Gishan

Correction to my previous message- the company started trading on Feb 2021, not Feb 2020. Looking forward to your advise.

Hi Gishan Don Ranasinghe,
You declare the dividends in the tax year that you receive them.
Dividends paid by your company Feb to Feb, should be declared in the tax year that you received them.
Eg. Feb 2020 to Feb 2021 should be declared in 2020 to 2021 Tax return.
You can amend your 21/22 tax return up to 31 January 2024, after which you will need to submit an overpayment relief claim,(OPR) using the format shown here:
SACM12150 - Overpayment relief: Form of claims.
After 6 April 2024, it will be to late to claim OPR for 2019 to 2020.
Thank you. 

 

Hi,   Our company tax year runs from Jan to December. This means the 2022 limited company tax year covered the Jan 2022 to Dec 2022 period.   Now we are going to submit the 6 April 2022 to 5 April 2023 Self Assessment by 31st January 2024. This means we now know the dividends we took between January 2023 and April 2023 period as well.   Instead of using the dividends amount we took from 6 April 2022 to 5 April 2023, we can still use the company tax year dividends (the dividends we took between January 2022 and December 2022) for the April 2022/April 2023 Self-Assessment submission. Is that correct? Thanks, 

Hi Gishan Don Ranasinghe,
Yes you can.
Thank you.