I have just realised that we have not been paying tax on our savings and dividends. What should I do?
20 September 2021
Question by Grace
My husband is no longer able to cope with our finances, and I have just realised that we have not been paying tax on our savings and dividends. What should I do?
Answered by Boring Money
I hope that this email finds you and your husband well.
Thank you for your question, I am sorry to hear that your husband is no longer able to cope with your finances. It is important that your money is structured in such a way that you legitimately pay as little tax on what it earns you as possible.
Depending on yours and your husbands tax status (basis rate or higher rate) you will each have a 'personal savings allowance' which means that the interest you receive from your savings will be tax free up to £1,000 p.a. In addition to the personal savings allowance, you will also each have a 'dividend allowance' of £2,000 p.a. which means that the first £2,000 of any dividend income you each receive will not be subject to taxation.
In addition to the above two allowances there are also ISA's (Individual Savings Accounts) which can help to protect your savings and investments from additional taxation.
If you feel that you should not have been paying tax on your savings and dividends but tax has been deducted, then it would be a very good idea to speak to both a financial planner and an accountant. A financial planner can make sure that you and your husbands monies are set up that this is no longer a problem going forwards and an accountant will be able to see how you can claim some of this tax back?
I hope that the above is of help to you both and if you have any questions at all, I would love to hear back from you.