What if my dividends are under £500?

If your total dividend income is within the £500 dividend allowance and you are not already required to file Self Assessment, you may not need to register or report your dividends. However, if you are already registered for Self Assessment for any reason, you must still declare all dividend income on your return.

How do I declare dividends from a company I own?

If you own a limited company and receive dividends from it, you declare them on your Self Assessment return in the 'dividends from UK companies' section. You will need dividend vouchers showing the amount and date of each dividend payment. Your accountant can help you complete this correctly.

Can HMRC collect dividend tax through PAYE?

HMRC sometimes adjusts your PAYE tax code to collect small amounts of dividend tax (typically for amounts up to £10,000). However, if your dividend income is significant, you must file a Self Assessment return to declare and pay the tax owed.

What records do I need to keep for dividend income?

You should keep dividend vouchers, broker statements and any dividend reinvestment confirmations. For shares in your own company, keep formal dividend vouchers signed by the directors and any board minutes authorising the dividend payment.

Guide

Dividends and Self Assessment 2026/27

Q: When must I file Self Assessment for dividends?

Dividend income above the £500 dividend allowance is taxable. HMRC's guidance is that you must register for Self Assessment if your dividend income is over £10,000 in a tax year; between £500 and £10,000 you can instead ask HMRC to collect the tax through your tax code. If your dividends are within the £500 allowance, you do not need to report them — but check GOV.UK for the current rules as thresholds can change.

Written by James Whitfield · Updated August 2026 · Checked against 2026/27 HMRC rates

HMRC doesn't collect most dividend tax automatically, so above certain thresholds it's on you to tell them and pay it. Get it wrong and the penalties stack up fast. This guide covers exactly when dividends trigger Self Assessment, how to declare them, and what to keep on file.

Quick answer

In 2026/27 you must tell HMRC about dividends over the £500 allowance³. If your dividend income is over £10,000 you have to register for Self Assessment¹ and file a tax return. Between £500 and £10,000 you can instead ask HMRC to collect the tax through your PAYE tax code. Dividends inside an ISA never need declaring.

Key takeaways

Dividends over £10,000 mean you must register for Self Assessment² and file a return.
Between £500 and £10,000, you can ask HMRC to collect the tax through your tax code instead.
The 2026/27 return is due by 31 January 2028¹ for online filing — register by 5 October 2027 if you're new.
UK and foreign dividends go in separate boxes¹; ISA and pension dividends go nowhere — they're tax-free.
Keep dividend vouchers and, for your own company, board minutes authorising each payment.

When do dividends trigger Self Assessment?

Dividend income above the £500 allowance is taxable. HMRC guidance says you must register for Self Assessment if your dividend income is over £10,000 in a tax year; between £500 and £10,000 you can instead ask HMRC to collect the tax through your tax code.

Small dividends within the £500 allowance may not require registration if you have no other filing obligation. But thresholds can change. Check GOV.UK or ask a tax adviser to confirm the current position.

How dividend tax is estimated and paid

When you file, HMRC calculates dividend tax based on what you declare. Salary and other non-dividend income fills the Personal Allowance (£12,570) and rate bands first. Dividends sit on top.

The first £500 is covered by the dividend allowance at 0%. Above that: 10.75% basic rate, 35.75% higher rate or 39.35% additional rate depending on where your dividends land.

Worked example

An employee earns £40,000 and receives £2,500 in dividends outside an ISA in 2026/27. The salary keeps them a basic-rate taxpayer, so the dividends are charged at 10.75%.

Salary (basic-rate taxpayer)	£40,000
Dividends	£2,500
Dividend allowance (0%)	£500
Taxable dividends (£2,500 − £500)	£2,000
£2,000 taxed at 10.75%	£215.00
Dividend tax to declare and pay	£215.00

Because the dividends are under £10,000, this person could ask HMRC to collect the £215 through their tax code instead of filing a full return. Either way, it's declared for the 2026/27 tax year, due by 31 January 2028¹ online.

How to declare dividend income on Self Assessment

Dividend income goes in two places on the return:

Dividends from UK companies — UK-listed shares or your own company.
Dividends from foreign companies — overseas shares, where withholding tax treaties may also apply.

Dividends inside an ISA or pension don't need to be reported. Only dividends outside those wrappers are taxable and reportable.

Records to keep

Dividend vouchers from each company paying a dividend
Annual statements from your broker or platform showing dividends received
Dividend reinvestment confirmations (if applicable)
For your own company: formal dividend vouchers and board minutes authorising each payment