Answers · UK 2025/26
What is a dividend tax voucher?
A dividend tax voucher (now called a dividend advice note or dividend confirmation) is a document from a company confirming the dividend amount paid to a shareholder — it is used to declare dividend income on a Self Assessment tax return.
Full answer
Dividend tax vouchers were the traditional documents issued by UK companies to shareholders when paying dividends, showing the dividend amount and notional tax credit (pre-2016). Since April 2016 the tax credit system was abolished, but companies still issue **dividend advice notes** or **dividend confirmation letters** that serve the same documentary purpose. **What a modern dividend advice note shows:** - The company's name and registered address - The shareholder's name - The number of shares held - The dividend per share - The total gross dividend paid - The payment date and tax year **No tax is deducted at source:** Unlike employment income (PAYE), UK companies do not deduct tax before paying dividends. The shareholder receives the full gross amount and is responsible for declaring it on their Self Assessment return and paying any tax due. **Tax rates on dividends (2026/27):** - **Dividend Allowance:** £500 (first £500 of dividends per year is tax-free) - **Basic rate:** 8.75% on dividends above allowance - **Higher rate:** 33.75% - **Additional rate:** 39.35% **Self Assessment (SA1/SA102 dividend box):** Enter the gross dividend received (not net of any foreign withholding tax, if applicable). HMRC uses your total income to calculate the correct rate. **Foreign dividends:** Foreign companies may deduct withholding tax (WHT) at source. You declare the gross dividend and claim credit for WHT paid. Keep dividend statements from brokers or dividend advice notes from overseas companies. **Scrip dividends:** If you receive additional shares instead of cash (scrip dividend), the market value of shares received is treated as a dividend for tax purposes and must be declared.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.