Full time employee (PAYE) and additional dividends

[garnet]

Hi

Asking for a friend.
He is full time employee on PAYE. As such he doesn't fill tax returns every year.
Фor the first time he got some dividends for some shares he owns.
Does he need to submit SA TR for TY15/16 because of that? The gross dividend + his gross salary is less then £42 000.
Thanks.

[Louisa@InTouch]

He will only need to file a return if additional tax is due.

If his total gross income is within the basic rate band, it's unlikely he will need to file one.

But from 6 April 2016, if his dividends are greater than £5,000 he will need to file one.

[garnet]

He will only need to file a return if additional tax is due.

If his total gross income is within the basic rate band, it's unlikely he will need to file one.

But from 6 April 2016, if his dividends are greater than £5,000 he will need to file one.

No it is only for this current TY.
I guess the question here is: how does he know there is no tax due (although in this case he knows). But in general what governs if TR must be submitted (some people wont know how the system works especially if they are PAYE).

[VectraMan]

Has he counted the 10% tax credit on dividends?

[Louisa@InTouch]

It's always the tax payers responsibility to file a return.

But HMRC will soon be the first to tell you if you owe any taxes, with some interest and penalties for late returns/payments.

HMRC have a list on their website of who should file a return and they'll assume if you have income from various sources, other than just PAYE, you'll have considered whether this needs to be declared or has any taxes due.

[garnet]

Has he counted the 10% tax credit on dividends?

Yes, the gross divi (incl tax credit) + salary < £42 000.
So?

[Michael at BI Accountancy]

Yes, the gross divi (incl tax credit) + salary < £42 000.
So?

If your "friend" received dividends from shares then he would only need to file a return if he went into the higher or additional threshold.

Based on the figures you have provided he would be below the £42,465. Therefore no tax is due on Div's.