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

Tax
1 week ago

Xero Accounting Services Can Benefit your Business

As a business owner, the more financial information you have access to, the better equipped you are, and Xero accounting...
As a business owner, the more financial information you have access to, the better equipped you are, and Xero accounting services can streamline the way you run your business.  Working with a Platinum Xero advisor like MJ Kane, m...
Case Study
3 weeks ago

Voluntary Disclosure for Limited Company X – Case Study

HMRC disclosure support is often difficult to find. Especially when you aren’t even sure how much you owe on your tax ...
HMRC disclosure support is often difficult to find. Especially when you aren’t even sure how much you owe on your tax position. Making a HMRC voluntary disclosure always seems to be a daunting task to people. However, its one of...
Tax
1 month ago

Corporate Tax Accountants

Keeping up with corporate affairs for a limited company can be a challenge especially with the complex tax legislation, ...
Keeping up with corporate affairs for a limited company can be a challenge especially with the complex tax legislation, alongside the employment laws and reporting requirements. As such it may be a good idea to outsource your comp...
Tax
1 month ago

Director Tax Accountants

It can be complicated for UK company directors to navigate their personal tax affairs whilst running their business. Wit...
It can be complicated for UK company directors to navigate their personal tax affairs whilst running their business. With complexities such as having multiple income streams and complicated tax legislation, it may make sense to ou...
Tax
1 month ago

Corporate Accounting Services for Your Limited Company

Running a limited company comes with its fair share of financial responsibilities. From keeping up with the latest tax r...
Running a limited company comes with its fair share of financial responsibilities. From keeping up with the latest tax regulations to ensuring you have enough cash to meet your liabilities for the month ahead, there’s a lot ...
Tax
2 months ago

Tax Preparation Services

You might believe that as a small company, you have limited things to worry about when it comes to preparing taxes, lead...
You might believe that as a small company, you have limited things to worry about when it comes to preparing taxes, leading you to do this yourself. If you know what you are doing and don’t make mistakes, there is nothing wrong ...
Tax
2 months ago

Small Business Accountant

When looking for an small business accountant, the best place to start is by reviewing exactly what services you need no...
When looking for an small business accountant, the best place to start is by reviewing exactly what services you need now and in the future. If you are starting out as a small business, then it may not make sense for you to pick a...
Load More View All

Subscribe Now

Receive our latest news & insights directly to your fingertips.