Dividend Allowance

The dividend allowance is a tax relief that allows you to earn a certain amount from dividends each year, tax-free. In the 2023/2024 tax year, the dividend allowance is £1000. Any earnings from dividends up to this amount are not taxable, so you will only pay tax on anything earned beyond this. Dividends on any shares held in a Stocks & Shares ISA are entirely tax-free, so the dividend allowance does not apply to them.  For more information about dividends and their tax rates, visit our helpful Dividend glossary page!

Frequently Asked Questions

  • Do I need to pay National Insurance on dividends?

    No – National Insurance is not payable on dividends.

  • How do I pay tax on my dividends?

    Your method of paying tax on your dividends is dependent on the amount you earn in dividends that year:

    • If you earn between £1,000 and £10,000, you can either do a Self Assessment tax return or pay through your PAYE tax code
    • If you earn over £10,000 from dividends, you have to file a Self Assessment tax return

Search More Terms

News & Insights

New 1 day ago
As the UK general election looms just a month away, the potential for a government change is looking more and more likel...
As the UK general election looms just a month away, the potential for a government change is looking more and more likely as time goes by. Staying up to date with developments as an Accountancy firm with thousands of clients acros...
3 weeks ago
Facing insolvency is a daunting prospect for any business owner, but it doesn’t have to signal the end of the road...
Facing insolvency is a daunting prospect for any business owner, but it doesn’t have to signal the end of the road. With strategic planning, proactive measures, and expert guidance, businesses can navigate the challenges of ...
3 weeks ago
In today’s competitive business landscape, unlocking growth potential is essential for the sustainability and succ...
In today’s competitive business landscape, unlocking growth potential is essential for the sustainability and success of any limited company. Effective financial management lies at the heart of this endeavour, providing a so...
1 month ago
The recent statistics released by HMRC, and reported on by the ONS (Office for National Statistics), on tax receipts rev...
The recent statistics released by HMRC, and reported on by the ONS (Office for National Statistics), on tax receipts reveal a significant increase in tax collection, amounting to £827.7 billion for the latest financial period. Th...
1 month ago
In the intricate world of business finance, VAT regulations can be both daunting and essential for limited company owner...
In the intricate world of business finance, VAT regulations can be both daunting and essential for limited company owners to comprehend. Understanding these regulations not only ensures compliance but also opens avenues for strate...
1 month ago
Facing insolvency is a daunting prospect for any business owner. However, amidst the turmoil, there are practical steps ...
Facing insolvency is a daunting prospect for any business owner. However, amidst the turmoil, there are practical steps that businesses can take to navigate through this challenging period and emerge stronger on the other side. At...
2 months ago
As the end of the HMRC tax year approaches, limited companies in the UK are now working to optimise their tax efficiency...
As the end of the HMRC tax year approaches, limited companies in the UK are now working to optimise their tax efficiency. In conjunction, partnering with proficient tax accountants like MJ Kane Accountants, can offer invaluable su...

Subscribe Now

Receive our latest news & insights directly to your fingertips.