Self assessment where only income is £3k dividends

Self assessment where only income is £3k dividends - need to register for self assessment?

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Hi, I'm wondering if someone on here could help clear this up.

I have had no income throughout the year, except for about £3k of dividends from my company (UK resident).

Given no tax would be due on this as its not more than my personal allowance, do I still need to inform HMRC of untaxed income, and complete a tax return? Seems pointless to me but that doesn't mean its the right answer.

Thanks in advance

Replies (9)

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By Cat's whiskers
24th Jan 2019 12:52

How do you afford to live?

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By Matrix
24th Jan 2019 13:00

By “My company” do you mean a company where you are a Director and shareholder?

If so then the company has overpaid over £700 in tax by not taking advice.

See s7/8 TMA 1970 to see if you need to complete a tax return.

Thanks (1)
Replying to Matrix:
Red Leader
By Red Leader
24th Jan 2019 14:10

I've checked your figure and I can agree it.

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By Kylo Ren
24th Jan 2019 13:14

So where it says "Every person who is chargeable to income tax... " presumably this does not apply in this case? So no tax return needs to be submitted?

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Replying to Kylo Ren:
By Tim Vane
24th Jan 2019 13:21

Has a tax return been issued? Do you have a UTR?

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By Tim Vane
24th Jan 2019 13:20

Oops you would have been better off taking salary. Ah well.

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By legerman
24th Jan 2019 13:42

Unless you are already required to complete a tax return, the answer is no, as you only need to report taxable income. As others have pointed out, it's cost the Company almost as much as engaging an accountant who may well have helped to save further tax.

If you are required to complete a tax return, then yes, you declare it but there will be no tax to pay.

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RLI
By lionofludesch
24th Jan 2019 14:27

Anonymous - Are you a director ?

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By Tax Dragon
25th Jan 2019 06:29

Money is not the only form of income. The "how do you live?" question is a good one.

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