Non Disclosure of Dividends

Non Disclosure of Dividends

Non Disclosure of Dividends

Non disclosure of Dividends

A few years ago in the past there was a large sum of Dividends, which, could be declared from a company without incurring any Personal Tax Dividends

Over the years HMRC have started to imposing new rules where tax is deductible on Dividends with £2,000 allowance in 2022-2023 reduced to only £1,000 allowance in 2023-2024 and will be £500 in 2024-2025

Every individual is entitled to the Dividends allowance above regardless of what tax bracket falls into

After the Dividends allowance has been utilised then there will be tax at either basic rate 8.75%, higher rate 33.75% or additional higher rate income over £150,000, 39.35% or combination of each depending on the total Gross income in the tax year

HMRC are considering to look into Non Disclosure of Dividends

HMRC can easily look into Companies House records as well as the Accounts that are filed to them and link with the Director/Shareholders and review the movement in the reserves/profit and loss account

If Dividends have not been noted on a Personal Tax Return and tax was due then this will result in late interest/late payment penalty/additional penalty for failing to disclose in a timely manner and could raise further enquiry

We would advise for the current tax years and for the previous tax years if the treatment of Dividends have not been disclosed/noted on the Tax Return to come forward as soon as possible

If you require further advice or assistance, please feel free to get in touch

Tel: 01212852534


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