AIBU to ask a tax question on Mumsnet ?

[Christine7]

I know it’s not an accountancy site but I’ve googled and can’t find the answer.

It’s about the 10% notional tax credit on dividends that existed pre 2016/17.

If my personal tax computation said “ UK Dividends and tax credits £5,100”, did the company actually pay me £5,100 ? Or did they pay me £4,590 ( 5100 - 10% ).

Or does it mean that I did receive £5,100 but I didn’t have to pay tax on the first 10% ?

What do you mean by your ‘personal tax computation’? A comp prepared by an accountant or a P800 issued by HMRC?

you would have been paid the net, it was grossed up in the tax comp

It was prepared by an accountant . Obviously several years ago.

Thank you - so I only got the £4590? Did I pay the 10% tax , did the company pay the tax or was it notional?

Or does it mean that I got £5 100 , but 4590 was paid by the company as dividend and 510 was paid as a tax credit ?

Now you see why I am confused !

No one paid the tax it’s notional. It goes in the income section of your tax comp as the grossed up amount then in the section where the tax is calculated you get a deduction for the notional tax although it is tax paid. You would only end up having to pay any actual tax on the dividend if you went into higher rate . You would have received the net amount.

dividend tax is completely different now and you include the amount you receive in your tax comp, theres no tax credit

Thank you.