Guide

Dividend Tax Through Your Tax Code (No Tax Return Needed up to £10,000)

Written by James Whitfield · Last reviewed 19 October 2026 · Checked against 2026/27 HMRC rates

If you have a job or a pension and some dividends outside an ISA, you may not need a tax return at all. HMRC can collect the dividend tax through your tax code instead. Here is when that works, how to set it up and what to check on your code.

Quick answer

If your dividends are £10,000 or less and you do not already send a tax return, you can tell HMRC between 5 April and 5 October after the tax year and ask for your tax code to be updated, so the tax is taken from your wages or pension.¹ Over £10,000 you must use Self Assessment, registering by 5 October.¹ Nothing needs reporting while your dividends are covered by your allowances. Example: £4,000 of dividends on a £20,000 pension in 2026/27 means £376.25 of dividend tax, collected through your pension's tax code. If deductions exceed your Personal Allowance you get a K code, which can never take more than half your pay or pension.²

Key facts

Up to £10,000 and no tax return: tell HMRC between 5 April and 5 October and ask to update your tax code, or contact the helpline.¹
Over £10,000: Self Assessment; register by 5 October after the tax year if you are new.¹
If you already file a tax return, report all dividends on it.¹
2026/27: £500 dividend allowance, then 10.75%, 35.75% or 39.35%.
A K code cannot take more than half your pre-tax pay or pension.²

Run your own company too? Get all 7 tax packs in the Tax Pack Library — £9.99

Which route applies to you?

GOV.UK sets three routes, depending on the amount and whether you already file a return.¹ The £10,000 test is your dividend income for the tax year.

Dividends covered by your Personal Allowance and the £500 allowance	Nothing to report
Up to £10,000, no tax return	Tax code or helpline, 5 April to 5 October
Over £10,000	Self Assessment
You already send a tax return	Report on the return

Registration deadline for 2026/27 if you need Self Assessment: 5 October 2027. Online returns are due 31 January 2028.

Worked example: £4,000 of dividends on a £20,000 pension

Margaret is retired with a £20,000 workplace pension taxed through PAYE and £4,000 of dividends from shares held outside an ISA in 2026/27. Her pension uses the £12,570 Personal Allowance, so all the dividends fall in the basic-rate band.

Dividends received	£4,000.00
Dividend allowance (0%)	£500.00
Taxable at 10.75%: £3,500	£376.25

Because her dividends are under £10,000 and she does not file a return, Margaret can contact HMRC between 6 April and 5 October 2027 and ask for the £376.25 to be collected through her pension's tax code.

How to ask HMRC to update your tax code

Add up dividends received in the tax year (6 April to 5 April), using your dividend statements or platform tax summary. Leave out anything in an ISA.
If the total is over your allowances but £10,000 or less, contact HMRC between 5 April and 5 October, through your personal tax account or the helpline, and ask for your tax code to be updated.¹
Check the new code when it arrives. A lower number, or a K code, means HMRC is collecting tax on income that is not taxed at source.
Keep your dividend statements in case HMRC asks for them.

What a K code means

A K code means you have income or deductions higher than your Personal Allowance, so tax on that untaxed income is added to what your employer or pension provider deducts.² HMRC's examples include tax owed from an earlier year, the State Pension and savings interest above your Personal Savings Allowance.²

There is a safety limit: an employer or pension provider cannot take more than half of your pre-tax wages or pension under a K code.²

Already in Self Assessment?

If you send a return, the dividends go on it.¹ You can still ask for a balance to be collected through your code: that works if you owe less than £3,000, already pay tax through PAYE, and file online by 30 December (or on paper by 31 October).³ Otherwise the tax is due by 31 January.

Work out the tax first

Enter your salary or pension and dividends for 2026/27.

Open dividend tax calculator

Dividends and Self Assessment Dividend tax for retirees Dividend allowance 2026/27 When dividend tax is due

Sources & references

Every headline figure in this guide is drawn from the official HMRC and GOV.UK sources below and reflects the confirmed 2026/27 rates. Each link opens the relevant official page in a new tab.

Tax on dividends: how to report tax on dividends ↗ https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
Tax codes: if you have a K in your tax code ↗ https://www.gov.uk/tax-codes/k-in-your-tax-code
Pay your Self Assessment tax bill: through your tax code ↗ https://www.gov.uk/pay-self-assessment-tax-bill/through-your-tax-code
Tax on dividends ↗ https://www.gov.uk/tax-on-dividends

Verified against published UK government guidance.

Frequently asked questions

How much in dividends can I get before I need Self Assessment?

£10,000. Above that you must complete a Self Assessment return. Between your allowances and £10,000 you can instead ask HMRC to collect the tax through your tax code, if you do not already file a return.

Can HMRC collect dividend tax through my tax code?

Yes, if your dividends are £10,000 or less and you do not send a tax return. Tell HMRC between 5 April and 5 October after the tax year and ask them to update your tax code, so the tax is taken from your wages or pension.

Does HMRC know about my dividends automatically?

Do not rely on it. GOV.UK puts the responsibility on you: report dividends above your allowances, either through your tax code (up to £10,000) or Self Assessment.

Do I need to report dividends under £500?

No, if the £500 dividend allowance covers them, or your unused Personal Allowance does. Dividends in an ISA are tax-free and never reported.

What is a K tax code?

A code showing your untaxed income or deductions exceed your Personal Allowance, so extra tax is taken through PAYE. An employer or pension provider cannot take more than half your pre-tax pay or pension under a K code.

Disclaimer: General information about UK tax for 2026/27, not personal tax advice. Figures assume England, Wales or Northern Ireland income tax bands unless stated.