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Dividend declared payable 31/3/16, paid 12/4/16

Ex accountant deducted 10% tax credit and paid a net dividend-can I declare on 16/17 return as is?

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Can I report the dividend and 10% tax deduction on 16/17 retrun as it was paid early into 16/17 despite being declared atthe end of 15/16?

Replies (15)

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By johngroganjga
12th Jan 2018 11:30

You are misunderstanding a few things. You didn’t in 2015/16 deduct tax credits and pay net dividends. You just paid dividends - full stop. Tax credits were just something for your tax return and the calculation of your tax liability.

So what makes you say that the dividend you refer to came with a tax credit? Do you have a dividend voucher?

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By andy.partridge
12th Jan 2018 11:41

I am going to take a leap here and suggest to you that it was in fact 'paid' 31/03/2016, quite possibly to your advantage and that is what your accountant recorded. Subsequently, you chose to take the money owed to you a couple of weeks later.

Tell me if I'm wrong and why.

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By GDJMAAT
12th Jan 2018 11:48

I probably should add that my questioning arises as the dividends received are in relation to holding of 450 preference shares (of nominal value £1,000 each) - 225 paying dividends at 2.2% and the other 225 redeemed at par with proceeds debited to my DLA. Thank you.

Also, I fully understand the notional tax credit effect is only relevant when under the old rules you needed to enter a grossed up dividends figure on the SA100.

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Replying to GDJMAAT:
By Tim Vane
12th Jan 2018 11:53

GDJMAAT wrote:

I fully understand the notional tax credit effect is only relevant when under the old rules you needed to enter a grossed up dividends figure on the SA100.

Your "full understanding" is flawed. Dividends have always been entered net on the tax return.

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Replying to GDJMAAT:
By johngroganjga
12th Jan 2018 12:04

I hope the redemption proceeds were in fact credited to your DLA.

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Replying to johngroganjga:
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By GDJMAAT
12th Jan 2018 12:10

Yes, but in order to do so there must first be a debit balance on my account to be credited with the subsequent repayments by the company.

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Replying to GDJMAAT:
By johngroganjga
12th Jan 2018 13:18

GDJMAAT wrote:

Yes, but in order to do so there must first be a debit balance on my account to be credited with the subsequent repayments by the company.

No there doesn’t. That’s complete nonsense.

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Replying to GDJMAAT:
RLI
By lionofludesch
12th Jan 2018 12:15

Preference shares generally have a specific date for dividend payment.

What was it ?

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By Tax Dragon
12th Jan 2018 12:01

Are you not a year late with your question? Should you not have asked a year ago whether you needed to include the dividend in the 2015/16 tax return?

You should be amending that return, I suggest.

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By GDJMAAT
12th Jan 2018 12:02

Tim Vane - please refer to the box for 'service companies' on the old SA100. Flawed? Pot kettle...

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By GDJMAAT
12th Jan 2018 12:04

Tax Dragon - hence my question! I want to ensure I treat this correctly and amend 15/16 if necessary. It is only due to the timing of the dividend and the timing of tax changes that this query arises.

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By SteveHa
12th Jan 2018 12:14

If the documentation says it was payable 31/3/16, then that's when it is taxed.

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Replying to SteveHa:
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By GDJMAAT
12th Jan 2018 12:24

But under which tax rules and declared on what return? To my mind, if declared and reported as 31/3/16 then probably needs to go on a 15/16 return.

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Replying to GDJMAAT:
By SteveHa
12th Jan 2018 12:30

Yes, 15/16 using 15/16 rules for dividend taxation.

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7om
By Tom 7000
15th Jan 2018 10:14

This is easy
You get the dividend voucher
You look at the date
You put it In that fiscal year

This is first day in the job after graduating/ leaving school advice to be honest

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