Dividends 01 - Dividends from UK companies
You do not pay tax on the first £2,000 of dividend income you receive (the dividend allowance). You pay tax on dividends above the dividend allowance at the following rates:
- 7.5% on dividend income within the basic rate band
- 32.5% on dividend income within the higher rate band
- 38.1% on dividend income within the additional rate band
Include all of your dividend income, even if it's less than £2,000, as it will count towards your
basic or higher rate bands and may affect the rate of tax that you pay on dividends received in excess of the £2,000 allowance.
Your dividend voucher will show your shares in the company, the dividend rate and dividend payable. Put the total dividend payments in this box. Include any dividends from employee share schemes.
Do not include:
- Property Income Distributions from Real Estate Investment Trusts (REITs) or Property Authorised Investment Funds (PAIFs)
- stock dividends or non-qualifying dividends
If you think the information you are adding has an effect on your 6 April 2021 to 5 April 2022 or 6 April 2022 to 5 April 2023 PAYE Tax codes there is guidance to tell you how to let HMRC know of the change - If you think your code is wrong.
