Dividends received - recording date

[neilsolaris]

Hi,

Is someone able to help me understand the recording dates for dividends received please? A colleague of mine received a final year dividend of £1000, in the form of a cheque. They received the cheque on 1st April 2024, but didn't pay it into their account until 9th April 2024.

My understanding is that you record the dividend on the date you received it, is that right? But being a cheque, would that be the date the cheque was received, or the date the cheque was paid into their bank account? The dividend allowance is only £500 for this current tax year, so naturally they'd want to record it in the previous tax year (that was their original intention).

I'm not advising them by the way, this is for my own education and knowledge.

Many thanks.

 

[MyAccountantOnline]

Hi,

Is someone able to help me understand the recording dates for dividends received please? A colleague of mine received a final year dividend of £1000, in the form of a cheque. They received the cheque on 1st April 2024, but didn't pay it into their account until 9th April 2024.

My understanding is that you record the dividend on the date you received it, is that right? But being a cheque, would that be the date the cheque was received, or the date the cheque was paid into their bank account? The dividend allowance is only £500 for this current tax year, so naturally they'd want to record it in the previous tax year (that was their original intention).

I'm not advising them by the way, this is for my own education and knowledge.

Many thanks.

Assuming the 1 April was the date the dividend was declared and became payable it's 1 April so will be taxed in 2023/24.

This link may help https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim5040

 

[neilsolaris]

Assuming the 1 April was the date the dividend was declared and became payable it's 1 April so will be taxed in 2023/24.

This link may help https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim5040

Many thanks, I thought it was the declared date, until I googled it, and saw lots of info saying it's when it's received. But I remember it being when it is declared, just like you said.