Is HMRC to Provide Dividend Information?

Personal Tax - MTD - HMRC - Dividends

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Looking at Iris Personal Tax to do my first tax return for 2018 I have noticed a new tab under the dividend section called "Annual Summary".  Upon opening the tab it gives you the option to use HMRC value or User value with options to delete HMRC values and/or check for updates to HMRC values?

Anyone else noticed this and have any idea what it is for?

Are HMRC going to reintroduce quarterly CT61 returns for companies with full disclosure of dividends paid to shareholders (not to mention ACT (quiz question))

Replies (6)

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By jon_griffey
02nd May 2018 16:36

I noticed this too. I expect they will introduce it for listed companies first, but you can bet that the CT61 will be back with a vengeance for small companies.

It has often struck me that dividends are a major compliance black hole. Salaries are strictly reported via RTI and linked to the taxpayer personal tax record. But there is no reporting mechanism at all for dividends and I expect that many are not declared. I have never had an enquiry by HMRC asking for a reconciliation of dividends in a small company's accounts with what was declared on the SA return.

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By Wanderer
02nd May 2018 17:22

jon_griffey wrote:
I have never had an enquiry by HMRC asking for a reconciliation of dividends in a small company's accounts with what was declared on the SA return.

I've had them, admittedly with seven figure dividend amounts. Didn't take long to close with the explanation that 31 March isn't the same as 5 April!
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Replying to Wanderer:
ALISK
By atleastisoundknowledgable...
03rd May 2018 08:32

Wanderer wrote:

Didn't take long to close with the explanation that 31 March isn't the same as 5 April!

I’m always surprised/shocked how often this ‘obvious’ answer solves queries from mortgage brokers/letting agents/finance cos/Home Office/HMRC. Almost as if 5th April is an unadvertised date.

In fact, I had this issue myself once for a mortgage.
Broker: SA302 doesn’t match accounts.
Me: nope
Broker: mortgage company won’t allow it as they say it’s fraud.
Me: WTF. Are they F&*€%+!g stupid.
Broker: what shall I tell them
Me: one is to 31/03, the other 05/4
Broker: they asked does 5 days make a difference
Me: a huge one
Broker: they’ve asked if you can get the accountant who prepared the accounts & tax return to confirm it in writing.
Me: ? Really? It was me.
Broker: write it anyway and see what happens.
[written explanation and reconciliation given].
Broker: thanks, it’s all gone through.

Oh jeez - really!?!?

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By Wanderer
02nd May 2018 17:20

Sorry hell will freeze over before there's any chance of this working.

There's no chance a listed company's dividend records will tie up with HMRC.
Just a few things to think about:-
Joint holdings
Nominee holdings
MisMatch of shareholder data with HMRC identifiers.

HMRC can't get the basics right, this would be a massive project well beyond their capabilities.

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By vinylnobbynobbs
03rd May 2018 08:18

"Sorry hell will freeze over before there's any chance of this working."

When has that ever stopped HMRC?

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By david.bransbury
04th May 2018 08:42

When quarterly reporting is introduced for Corporation Tax, they will introduce the requirement to report the dividends voted in that period and to whom.

Possibly large companies may have the dividend reporting requirement introduced at a later stage but the HMRC really want the info on smaller companies.
The HMRC have suspicions that some 31 March/5 April dividends are not finalised until later in the year ....

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