How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15601
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

Do you still have to pay tax on dividends even though you have

Resolved Question:

Do you still have to pay tax on dividends even though you have a tax voucher for dividends received?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
When a company pays you a dividend, you get a ‘tax credit’ worth one-ninth of the dividend amount. You can offset this against any tax you owe.
What you owe depends on your income.
Basic rate taxpayers don’t need to pay any more tax. The tax credit is automatically offset against the dividend tax you owe (10%). Just declare any dividends in your tax return, if you complete one.
Customer: replied 2 years ago.

Thanks, ***** ***** as I pay tax at top rate I would have to pay further tax on dividends then, ie at 37.5%?

Expert:  TaxRobin replied 2 years ago.
You are most welcome.
My goal is to give you excellent service.
Unfortunately you are correct. You would pay more tax as a higher rate tax payer.
That rate is 37.5%
TaxRobin and other Tax Specialists are ready to help you