j
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Penguins are very misunderstood!
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Post by j on Jan 6, 2016 17:36:39 GMT
Can someone just confirm i've got this correct re:divi vouchers. Once obtained, you need to alert IR who will calculate whether you can claim tax back or are owed nothing? Is it done as part of the yearly tax return or can yu simply supply them the info & let them deal withit accrodingly? Also, is their any timeframe to clain any tax back?
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pom
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Post by pom on Jan 6, 2016 18:07:37 GMT
Not really sure what you're talking about but would assume you just deal with it in your tax return along with anything else
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j
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Penguins are very misunderstood!
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Post by j on Jan 6, 2016 19:46:42 GMT
Not really sure what you're talking about but would assume you just deal with it in your tax return along with anything else At face value, do you simply let IR know how much you earnt & claim back divi tax already levied if you think your earnings from it are tax exempt?
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adrianc
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Post by adrianc on Jan 6, 2016 20:26:00 GMT
Yep. Just put them on your tax return along with any other share dividends.
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mikes1531
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Post by mikes1531 on Jan 10, 2016 17:27:44 GMT
AFAIK, and I don't claim to know much... - If you're a basic-rate taxpayer, the tax you've been given 'credit' for (as shown on your voucher) covers your tax obligation on the dividends, so there's nothing further to pay.
- If you're a higher-rate taxpayer, the tax you've been given 'credit' for does not cover your tax obligation on the dividends. There's an additional amount to pay, and that will be dealt with when you enter the dividends on your tax return and the total tax owed is calculated.
- If you're a non-taxpayer... tough! You can't recover the tax 'credit' because no money was actually paid across to HMRC -- it's just a notional credit.
All the above applies only until the end of the current tax year. Starting 6/Apr/16 there will be no tax shown on dividend vouchers -- if they even still exist. The dividend payer still will need to tell you -- and HMRC -- how much they paid you in dividends so that you know what to put into your tax return, but it may simply be a 'statement' rather than a 'voucher' because there will be no tax involved. When it comes to calculating tax due, AIUI, only those with more than £5k of dividends -- or is that dividends and interest? -- will have to pay tax on that income.
This is all AIUI, and I may be misunderstanding something. This certainly is not advice, etc., etc.
Finally, I'll say that I'd be pleased to hear from anyone who thinks I've got it wrong!
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j
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Penguins are very misunderstood!
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Post by j on Jan 10, 2016 18:08:38 GMT
- If you're a non-taxpayer... tough! You can't recover the tax 'credit' because no money was actually paid across to HMRC -- it's just a notional credit.
How could that be though? If you get £60 in divi from THC, they automatically deduct 10% (£6) & you're paid £54 net. Where does the £6 go? I thought it went to hmrc! Anyone know otherwise?
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mikes1531
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Post by mikes1531 on Jan 10, 2016 19:07:13 GMT
If you're a non-taxpayer... tough! You can't recover the tax 'credit' because no money was actually paid across to HMRC -- it's just a notional credit. How could that be though? If you get £60 in divi from THC, they automatically deduct 10% (£6) & you're paid £54 net. Where does the £6 go? I thought it went to hmrc! Anyone know otherwise? AFAIK it's just an accounting exercise. If you have access to the accounts for the company, you might be able to determine whether they show dividends paid per share to be £54 or £60.
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adrianc
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Post by adrianc on Jan 10, 2016 21:45:28 GMT
- If you're a non-taxpayer... tough! You can't recover the tax 'credit' because no money was actually paid across to HMRC -- it's just a notional credit.
How could that be though? If you get £60 in divi from THC, they automatically deduct 10% (£6) & you're paid £54 net. Where does the £6 go? I thought it went to hmrc! Anyone know otherwise? It's taken into account in the corptax paid by the company, IIRC.
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