Hi,
After paying dividends in the tax year 20/21, after one year with no dividend in 2019/2020, I understand the settlement of the tax bill on this dividends 20/21 will happen in Jan 22 ( when we prepare the return to include those dividends).
Is this correct or is HMRC expecting that we pay this tax on dividends 20/21 in advance of Jan 22 and when and how to do this if necessary ?
Thanks all
Replies (8)
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Your understanding is correct.
Subject to any payments on account. You don't give enough information to comment.
Hi Lionofludesch,
we do not have payment on account as we did not have dividends for a year ...
Dividends aren't the only thing that might cause you to have payments on account but thanks for confirming.
Agree Lion
No such thing as advance tax, payments on account are set are set according to prior year tax liability.
You can choose to pay tax early if you wish to
January and sometimes July are the tax deadlines. No interest unless you miss those dates.