dividend income

[MuhammadAzeem]

Hi All,

I want to know if we claim points on gross dividend or net dividend drawn. For example, I receive a dividend of £2700 from my own company who I'm a sole director for so will I claim points for £2700 Net or £3000 gross (i.e. £2700+10% tax credit).

Thanks.

[Yash001]

Gross dividend ....there are many postings on this...you can go through those

[karg_g]

Hi

Short answer : Gross.

Detailed Answer:

Assume you made less than 8105 in the last year and you can not claim the tax credit of the dividends you claim.

Ex: Total Salary + Earnings from Savings etc., =3500

Net Dividends = 12000

Gross Dividends = 13333.33

Now since you have not hit the 8105 in Salary/Other earnings, you are not supposed to claim the Tax credit on (13333.33-3500=9833.33), which means you can not file a claim with HRMC for 983.33 even though you have made less than 8105.

I am trying to say that HRMC wont give you back the difference which means ideally UKBA should only accept Net dividends, but you know how UKBA works, so just go with rules and just gross dividends for your calculation