Dividends tax free allowance and personal tax

[digimars]

When I withdraw dividends that are within the tax free allowance, £500 this year I think, do I have to pay income tax on these dividends as well? (considering that my total income was more than is the personal tax allowance, £12,570 i think this year). In other words, is the tax free dividend subject to personal income tax?

Many thanks

 

[MyAccountantOnline]

When I withdraw dividends that are within the tax free allowance, £500 this year I think, do I have to pay income tax on these dividends as well? ....

No - the Dividend Allowance means it's free of Income tax.

 

[DontAsk]

The phrase "tax free allowance" should be clear. Are you confusing company and personal taxation?