This section of the form allows you to report your dividend income for Making Tax Digital (MTD) for Income Tax. You should include all dividend payments received from UK and foreign companies, as well as any specific share schemes, stock dividends, redeemable shares, or close company loans written off during the tax year.

Additional Directorship Dividends

If you are a director of a company, particularly a close company, use this section to provide details about the company and the dividends you received from your directorship.

Company Director

• What to enter: Indicate whether you were a director of a company during the tax year.
• HMRC Guidance: You must declare your directorship status if you receive dividends from a company where you are a director.

Close Company

• What to enter: If you are a company director, indicate whether the company is a close company.
• HMRC Guidance: A close company is broadly defined as a privately owned company controlled by five or fewer “participators” (such as shareholders or directors), or controlled by any number of directors who are also shareholders.

Directorship Ceased Date

• What to enter: If you stopped being a director during the tax year, enter the date your directorship ended in the dd/mm/yyyy format.
• HMRC Guidance: Providing this date confirms that you are no longer receiving directorship-related dividends from this company for future tax periods.

Company Name

• What to enter: The name of the close company you are a director of.
• HMRC Guidance: Provide the exact name by which the company is registered with Companies House.

Company Number

• What to enter: The official company registration number.
• HMRC Guidance: This is the registration number assigned to the company by Companies House.

Shareholding

• What to enter: Your percentage shareholding in the close company, up to two decimal places (e.g., 20.99). Enter a zero if you do not own any shares.
• HMRC Guidance: You must declare the exact proportion of the company that you own when receiving dividends as a director of a close company.

Dividend Received

• What to enter: The exact amount of dividends you received from the close company. Enter a zero if you did not receive any dividends.
• HMRC Guidance: This should reflect the actual payments made to you by the company as a return on your investment during the tax year.

UK Dividends

Use this section to record any general dividends you have received from UK companies or typical UK investment funds.

UK Dividends

• What to enter: The total amount of dividend payments you received from UK companies during the tax year. This includes any dividends from employee share schemes.
• HMRC Guidance: Only enter the actual amount of the dividend payment received. You do not need to include any dividend tax credits in this figure. Do not include dividends from ISAs, as these are tax-free.

Other UK Dividends

• What to enter: The total amount of dividends received from UK investment funds, such as Authorised Unit Trusts, Open-Ended Investment Companies (OEICs), or Investment Trusts.
• HMRC Guidance: Include dividends from accumulation units or shares, even if they are automatically reinvested. Do not include property income distributions (PIDs) from Real Estate Investment Trusts (REITs) or Property Authorised Investment Funds (PAIFs) here.

Foreign and Other Dividends

Use this section to declare dividends from foreign sources, as well as specific types of shares and related income like stock dividends or close company loans written off.

Foreign Dividend

• What to enter: Ensure you provide information about any dividend income received from foreign companies. You will need to complete the related details (such as the country and amounts) for each source of foreign dividends.
• HMRC Guidance: Foreign dividends must be reported in UK pounds. You should convert the amounts into GBP using the exchange rate on the day you received the payment, or the HMRC average exchange rate for the tax year.

Dividend Income Received Whilst Abroad

• What to enter: Provide details of any foreign dividend income you received while you were living or working abroad. Complete the specific details for each foreign source.
• HMRC Guidance: The same rules apply as regular foreign dividends. Ensure amounts are converted to UK pounds and reported gross of any foreign tax.

Country Code

• What to enter: Select the full country name where the foreign company distributing the dividend is based.
• HMRC Guidance: This accurately identifies the source country of your foreign income, which is required for calculating any eligible tax relief.

Amount Before Tax

• What to enter: The total amount of your foreign dividend income in UK pounds, calculated before any foreign tax was deducted.
• HMRC Guidance: Always report foreign income using the gross amount before deductions.

Tax Taken Off

• What to enter: The total amount of any foreign tax that was deducted from your dividend before it was paid to you.
• HMRC Guidance: This figure helps determine if you are eligible to claim relief for tax already paid overseas.

Special Withholding Tax

• What to enter: The total amount of Special Withholding Tax (SWT) and any UK tax deducted from your foreign dividend income, expressed in UK pounds.
• HMRC Guidance: Special Withholding Tax is an amount retained by some overseas jurisdictions to cover tax liabilities. Declaring it correctly ensures it can be set against your overall UK tax liability.

Foreign Tax Credit Relief

• What to enter: Indicate whether you wish to claim Foreign Tax Credit Relief (FTCR) against your foreign dividend income.
• HMRC Guidance: You can usually claim FTCR if you have paid foreign tax on your dividend and are also liable for UK tax on the same income. This prevents you from being taxed twice on the exact same income.

Taxable Amount

• What to enter: The net taxable amount of the foreign dividend.
• HMRC Guidance: This is generally your gross foreign dividend income minus any allowable expenses or specific statutory deductions.

Stock Dividend

• What to enter: Provide details of any stock dividends you received during the year. You will need a reference name and the gross amount.
• HMRC Guidance: A stock dividend is when a company gives you new shares instead of a cash dividend. The company should provide you with a dividend statement showing the “cash equivalent” of the share capital issued to you.

Redeemable Shares

• What to enter: Record information about any redeemable shares you received as income rather than a cash payout. Provide a reference name and the gross amount.
• HMRC Guidance: If a company issues you redeemable shares, the nominal value of these shares is treated as dividend income and must be reported.

Bonus Issues Of Securities

• What to enter: Enter details of any bonus issues of securities you received instead of cash dividends, including a reference name and the gross amount.
• HMRC Guidance: A bonus issue of securities occurs when a company issues securities (like debentures or bonds) to you instead of a cash dividend. The value of these securities counts as income.

Close Company Loans Written Off

• What to enter: Provide details of any loan from a close company that has been written off, released, or forgiven during the tax year.
• HMRC Guidance: If you are a participator in a close company and the company writes off or releases a loan it previously made to you, the amount written off must be declared and is treated as dividend income.

Customer Reference

• What to enter: A reference or brief description to help you identify the specific dividend, share, or written-off loan.
• HMRC Guidance: This is for your own records to identify the source of the income and distinguish it from other entries.

Gross Amount

• What to enter: The exact total value of the stock dividend, redeemable shares, bonus issues, or written-off loan.
• HMRC Guidance: Report the full equivalent cash value or nominal amount before any deductions.