Tax refund on gross dividend
Discussion
Looking for some help here, please.
I recently received a dividend from my company ASOP plan. The gross dividend was under £2000 but my company still deducted tax at 7.5% reducing the net dividend by approximately £120.
Why my company took it upon themselves to deduct a tax that I wasn’t liable to pay is beyond me but I was informed that I can receive a credit for the tax by contacting HMRC. My question is do I have to complete a self assessment at the end of this tax year and claim the credit then or is there a method I can recover the payment now?
I recently received a dividend from my company ASOP plan. The gross dividend was under £2000 but my company still deducted tax at 7.5% reducing the net dividend by approximately £120.
Why my company took it upon themselves to deduct a tax that I wasn’t liable to pay is beyond me but I was informed that I can receive a credit for the tax by contacting HMRC. My question is do I have to complete a self assessment at the end of this tax year and claim the credit then or is there a method I can recover the payment now?
Eric Mc said:
Companies are not required by law to deduct tax on UK dividends. Indeed, it is illegal for them to do so. Are you sure this is a UK dividend?
Yes it is a UK dividend. I agree that the company has no mandatory requirement to deduct the tax but can you please share a link that confirms the illegality of the tax deduction? Thanks
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