You must do Self Assessment for dividends if they are over £10,000 in a tax year, or if you already file a tax return. For dividends between £500 and £10,000 where tax is due, you can instead tell HMRC after 5 April and before 5 October, often through a tax code change.
Receiving dividends from shares or taking money out of your own limited company can be a useful way to earn income. However, understanding Self Assessment for Dividends is important because the tax you owe depends on how much you receive, your other income and the tax year in which the dividends are paid.
For the 2026/27 tax year, the dividend allowance remains £500, but dividend tax rates have increased for basic rate and higher rate taxpayers. Even if your dividends are relatively modest, you may need to tell HM Revenue and Customs (HMRC) if tax is due on them.
This guide explains when you need to report dividends, how to declare them, what tax you could pay and which records to keep. It also covers what to do if you receive dividends between £500 and £10,000 but do not usually complete a Self Assessment tax return.
Do You Need to Do Self Assessment for Dividends?
You do not automatically need to complete a Self Assessment tax return simply because you receive dividends. The requirement depends on the amount of dividend income, whether tax is due and whether you already have to submit a return for another reason.
The dividend allowance is £500 per tax year. If your total dividend income falls within this allowance, you generally do not need to tell HMRC about it solely because you received dividends. Dividends that fall within your unused Personal Allowance are also not taxed, so you only need to tell HMRC when your dividends are more than both your unused Personal Allowance and the £500 dividend allowance.
If your dividend income is more than both allowance, then what you do next depends on the amount of income and your situation.
- Dividends within the £500 allowance: It is not necessary to notify HMRC of them only for dividend tax.
- Dividends above £500 and up to £10,000, where tax is due: If you do not complete Self Assessment then for any dividend income over your allowance and up to £10,000, you must tell HMRC after the end of the tax year (5 April) and before 5 October. You can ask HMRC to update your tax code, so the tax is taken from your wages or pension, or you can contact the HMRC helpline.
- Dividends above £10,000: If your dividend income is over £10,000, you will need to complete a Self Assessment tax return, and register to do this by 5 October after the end of the tax year if you haven’t already done so.
- Existing Self Assessment taxpayers: Dividend income covered by the £500 allowance is taxed at 0%, but it must still be included if you already submit a Self Assessment return.
In short, Self Assessment for dividends depends on how much you receive and whether tax is due. These rules apply to reporting on a dividend. You may still have to file a tax return for other income, such as any income from self employment or rental activity.
If you receive £2,000 in dividends, have no other reason to file a return and tax is due on the dividends, you will need to let HMRC know. If your total income, including the dividends, is no more than £13,070 (the standard Personal Allowance plus the dividend allowance), no dividend tax is due and you do not need to report it. If you do already file a rental return, then the dividends should also be included.
For the official rules, see HMRC’s guidance on reporting dividend tax.
Dividend Allowance and Tax Rates for 2025/26, 2026/27 and 2027/28
The dividend allowance is the amount of dividend income that is taxed at 0%. It is separate from your Personal Allowance, and it does not mean that all dividends are tax free.
You can also receive some or all of your dividend income within your Personal Allowance, if it has not already been used up by other income. This is why it is important to consider salary, pension and other taxable income when working out your dividend tax.
The rates below apply to dividend income above the relevant allowances.
| Dividend tax band | 2025/26 | 2026/27 | 2027/28 |
| Dividend allowance | £500 | £500 | £500 |
| Basic rate | 8.75% | 10.75% | 10.75% |
| Higher rate | 33.75% | 35.75% | 35.75% |
| Additional rate | 39.35% | 39.35% | 39.35% |
The 2027/28 figures reflect current government announcements and may change.
The tax year 2025/26 runs from 6 April 2025 to 5 April 2026. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027 and for 2027/28 it runs from 6 April 2027 to 5 April 2028.
If you are reporting dividends for 2025/26 (the year that ended on 5 April 2026), use the 2025/26 rates in the table, not the 2026/27 rates.
Your dividend tax band depends on your total taxable income, not just your dividends. Dividends are treated as the top slice of your income, so your salary, pension and other taxable income use up your basic rate band first.
For instance, if you already pay higher rate tax on your regular income, dividends above the allowance will also be taxed at the higher dividend rate. If you have no other income, your dividends can use some or all of your Personal Allowance. Scottish and Welsh taxpayers pay dividend tax at the same rates as the rest of the UK.
As the rates have altered in 2026/27, do not use an old dividend tax calculator or depend on a previous year’s tax rates. Make sure to review the tax year prior to estimating tax liability.
How to Report Dividends Without Self Assessment (£500 to £10,000)
Self Assessment for dividends is not always required. You can report dividend income in excess of £500 but not more than £10,000 without completing a Self Assessment return if you do not normally complete a Self Assessment return.
According to GOV.UK, you must let HMRC know after the end of the tax year (5 April) and before 5 October. HMRC can collect the tax by updating your tax code (taking it from your wages or pension) or may ask you to pay it directly.
You may get in touch with HMRC on their official channels and tell them about the total dividend income that you received during the tax year. Have dividend statements readily available to provide correct numbers.
Example: Suppose you receive £3,200 in dividends during 2026/27 and your other income is in the form of employment income. (for example, a salary of £30,000, so tax is due on the dividends). You do not already complete a tax return. The dividend income should be reported after 5 April 2027 and before 5 October 2027. You would do this by asking HMRC to update your tax code or by contacting the helpline in that window.
It is your responsibility to ensure you are meeting your tax obligations.
Do not use this alternative reporting method if you already file Self Assessment. Include your dividends on the return instead.
Self Assessment for Dividend Income: How to Declare Dividends on Your Return
Where you have dividend income, this should be reported in the dividend section of the Self Assessment tax return. On the main SA100 return, this is the interest and dividends section. If you are a director of a close company, the return also asks you to confirm this and your shareholding. The figures are for the tax year and not the company’s accounting year.
Before completing the return, gather the following information:
- All the dividends received from a company or investment.
- Where applicable, the respective dates the dividends were paid or are due to you.
- Dividend vouchers, investment account statements or any broker statements.
- Details of any other income that may affect your tax band, such as salary or pension.
- Keep dividends separate from salary, interest, capital gains and other payments.
If you are a shareholder in a limited company, check your company records and dividend vouchers. Avoid taking all withdrawals from the company bank account as a dividend. Payments must be classified properly and backed up by the proper company records. A company can only pay dividends from distributable profits. In practice, the most common problems we see are dividends paid without a dividend voucher or board minute, or paid when the company has not made enough profit to support them. These are much harder to fix after the event than to get right at the time.
If you own shares in more than one company, add up the dividends from all of them. The £500 dividend allowance applies once to your total dividend income for the tax year, not to each company.
After all the numbers are in, check through the return before submitting. Make sure you have included all applicable dividends and selected the right tax year.
For additional guidance, refer to HMRC’s dividend tax guidance.
Self Assessment Deadlines for Dividends
The deadlines for Self Assessment for dividends follow the normal Self Assessment calendar. For dividends received in 2026/27 (6 April 2026 to 5 April 2027):
- Register for Self Assessment, or tell HMRC about taxable dividends, by 5 October 2027.
- File your online return by 31 January 2028.
- Pay any tax due by 31 January 2028.
For dividends received in 2025/26, the online filing and payment deadline is 31 January 2027. If your bill is larger, HMRC may also ask for payments on account towards the next tax year.
Which Tax Year Do Your Dividends Belong To?
Dividends are generally taxed in the tax year you receive them. For an interim dividend, this is the date it is paid. For a final dividend, it is normally the date it becomes due for payment. The company’s accounting year end does not decide the tax year.
This matters when a company declares a dividend near the end of the tax year but pays it later. Check the declaration and payment dates against the rules above.
For instance, if you receive a dividend in May 2026, it falls in the 2026/27 tax year (6 April 2026 to 5 April 2027).
The personal tax year in which you report dividends will not change if your company year ends differently from that of a personal tax year. Your company accounts are reported at different periods from your personal Self Assessment.
It’s especially crucial for the directors who own shares in their own company to keep proper dividend records. Document the declaration and payment, rather than just bank transactions.
How Much Tax Will You Pay on Dividends? A Worked Example
Dividend tax depends on your other income, your Personal Allowance, the dividend allowance and your tax bands.
Consider this example for 2026/27:
- Salary: £30,000
- Dividends received: £4,000
- Personal Allowance: £12,570
- Dividend allowance: £500
Assuming the standard Personal Allowance applies in full and there is no other income or adjustment, the calculation is as follows.
Step 1: Calculate taxable salary.
£30,000 salary − £12,570 Personal Allowance = £17,430 taxable salary.
Step 2: Calculate dividends above the dividend allowance.
£4,000 dividends − £500 dividend allowance = £3,500 potentially taxable dividends.
Step 3: Apply the dividend tax rate.
The person’s taxable salary is within the basic rate band. After allowing for the salary, the £3,500 of dividends also remains within the basic rate band in this example.
Dividend tax is therefore:
£3,500 × 10.75% = £376.25
This is an illustrative calculation of dividend tax only. It does not include the Income Tax due on the salary or any other tax liabilities.
The example also shows why it is not enough to look at dividend income in isolation. If the person had a higher salary or additional taxable income, some dividends could fall into a higher tax band.
Higher rate example for 2026/27: a salary of £60,000 and dividends of £10,000. The taxable salary after the £12,570 Personal Allowance is £47,430, which already takes you into the higher rate band, so all the dividends are taxed at the higher dividend rate.
£10,000 dividends − £500 dividend allowance = £9,500 × 35.75% = £3,396.25
This is dividend tax only and does not include the Income Tax due on the salary.
Dividend Records HMRC May Ask For
HMRC may ask to see your dividend records if it checks your return.
Keeping good records makes Self Assessment for dividends easier and helps to ensure that you complete your return accurately and are able to answer questions from HMRC. It may also aid you to search out errors prior to you submitting your numbers.
Maintain documentation indicating the source of the dividends, the amount received and the date received.
Useful documents include:
- Dividend vouchers: These show details of dividends paid by a company.
- Broker or investment statements: These are used to balance dividends received from shares and investment accounts.
- Bank statements: These will show payments were received, but might not be enough in isolation.
- Company records: Keep relevant dividend declarations, minutes or resolutions and supporting documents.
- Tax returns and calculations: Save copies of tax returns and calculations.
If you have multiple investments giving you dividends, keep a basic spreadsheet with the company/fund name, date paid, amount received, and additional documentation. Check the total before Self Assessment, with your annual statements.
Dividends are not the same as interest or capital gains. They are treated differently for tax and may need to go in different sections of your return.
How MyIVA Helps With Self Assessment for Dividends
If you receive dividends from your own limited company, hold shares in several businesses, or have a salary, rental income and investments in the same tax year, reporting dividends can become complicated.
MyIVA can make it easier to gather financial information and guide you through the process of filing your tax return, including Self Assessment for dividends from your own company or personal shares. Support can involve an examination of the records you submit and determining what information is required for dividend reporting and how this can be accomplished.
As a company director, it’s especially important to keep your company accounts and personal tax records in order. Your salary and withdrawals such as dividends should be correctly recorded so that it reflects the personal return and is supported by the company records.
The best time to request assistance is before the filing deadline, giving you time to fix issues such as missing dividend vouchers, unclear payment dates or gaps in your payment history.
To discuss your requirements, visit MyIVA.
Need Help Reporting Your Dividends?
MyIVA prepares and files your Self Assessment return, including dividends from your own company or shares, so your figures match your records.
FAQs: Frequently Asked Questions
Do I report dividends under the £500 allowance?
You typically won’t have to report this dividend income to HMRC just for dividend tax purposes if the total dividend income is within the £500 dividend allowance (or your unused Personal Allowance). If you are already filing your own Self Assessment, then you will need to declare your dividend income on the Self Assessment form.
Can HMRC collect dividend tax through my tax code?
In some cases, yes. Where your dividend income is above your allowance but not over £10,000, and you don’t normally complete Self Assessment, HMRC may be able to recover the tax by changing your tax code. Contact HMRC after the tax year has ended and before 5 October to discuss your circumstances.
Does it matter that my company year end isn’t 5 April?
Not for the tax year. Your company’s year end does not decide your personal dividend tax year, although it matters for your record keeping. Dividends are generally taxable in the tax year you receive them (see the interim and final dividend rules above).
Do the same rules apply to shares I hold personally?
The dividend allowance and dividend tax rates usually apply to eligible dividend income from shares held personally, such as shares in listed companies. Dividends received from stocks and shares inside an ISA are not taxable. Other investment vehicles may have different rules and regulations, so check the type of investment vehicle.
What happens if I miss the 5 October deadline?
If you missed the 5 October deadline to report dividend income, contact HMRC promptly. For 2025/26, that deadline was 5 October 2026. HMRC will be able to clarify if you are required to register for Self Assessment, file a return or if you are to use another reporting route. You may be charged a penalty for failing to tell HMRC on time, so do not delay. Do not wait until the payment deadline if you already know that you need to report the income.
Do ISA or pension dividends count?
Dividends received from shares in a UK Individual Savings Account (ISA) do not have to be reported as dividend income on your Self Assessment return and will not be subject to taxation. Dividend income from pension investments is generally not reported as your income since it is received within the pension arrangement. Money you withdraw from a pension is taxed under different rules.
Do dividends count towards the Making Tax Digital threshold?
No. The Making Tax Digital for Income Tax income threshold looks at self employment and property income. Dividend income does not count towards it, but you still report dividends on your Self Assessment return.
Conclusion: Get Self Assessment for Dividends Right
Understanding Self Assessment for Dividends starts with three questions: how much dividend income did you receive, which tax year does it belong to, and how much other taxable income do you have?
For 2026/27, the dividend allowance remains £500, while the basic rate and higher rate dividend tax rates have increased to 10.75% and 35.75% respectively. If you receive more than £500 in dividends and tax is due, check whether you need to contact HMRC or include the income on a Self Assessment return.
Keep your dividend vouchers, investment statements and company records organised throughout the year. If your circumstances involve several income sources or dividends from your own company, professional support can help you prepare an accurate return and address questions before the deadline.
MyIVA can help you organise your records and navigate the preparation process. Visit MyIVA to discuss the support you need.
