advance tax on dividends

Advance Tax mechanism on dividends

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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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RLI
By lionofludesch
26th May 2021 10:56

Your understanding is correct.

Subject to any payments on account. You don't give enough information to comment.

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Replying to lionofludesch:
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By cathycat
26th May 2021 11:21

Hi Lionofludesch,
we do not have payment on account as we did not have dividends for a year ...

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Replying to cathycat:
RLI
By lionofludesch
26th May 2021 11:44

cathycat wrote:

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.

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By Paul Crowley
26th May 2021 11:32

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

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Replying to Paul Crowley:
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By cathycat
26th May 2021 13:39

Ok thanks Paul. Not wanting to pay in advance but want to avoid interest accumulating if any !!

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Replying to cathycat:
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By SXGuy
26th May 2021 14:31

January and sometimes July are the tax deadlines. No interest unless you miss those dates.

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By I'msorryIhaven'taclue
26th May 2021 13:48

Three Cool Cats!

Happy Kent Day, Lion ;-)

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Replying to I'msorryIhaven'taclue:
RLI
By lionofludesch
26th May 2021 14:10

I'msorryIhaven'taclue wrote:

Three Cool Cats!

Happy Kent Day, Lion ;-)

Indeed!

[Chuckle]

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