Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Dividend tax calculation error in online SA?

    I have struggled with this for the last few years. I really can't get my head around it, and can find absolutely nothing online that explains it. My situation is similar to PeterRabbit and had exactly the same thought - Dividends are being taxed at 20% not 8.75%. Lasst year I put a number of different scenarios into my Self Assessment form and compared with my own calculations and HMRC tax owed always cam out less, but only by a few £'s. So there is clearly something going on with the use of allowances in a beneficial manner, but I simply can not fathom it - and it is really, really annoying! If anyone can explain it, especially with an example, I would be extremly grateful.