How dividends are recorded on a Self Assessment tax return in FreeAgent

This article explains where to find declared dividends on your Self Assessment tax return in FreeAgent and how to add dividends from other sources.

Navigate to the ‘Taxes’ tab at the top of the screen and select ‘Self Assessment’ from the drop-down menu.

Screenshot showing the 'Taxes' menu with 'Self Assessment' highlighted

Select the relevant user from the drop-down menu. Any shareholders who are receiving dividends need to be set up as shareholders, employees, or directors in the 'Users' area.

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Select the relevant tax year from the list or from the 'History' drop-down menu.

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Select the 'Main Return' tab from the 'Your Tax Return' panel on the right.

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The dividend income from the company will appear in the 'Income' section under 'UK interest and dividends'.
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The dividend income will also appear on the 'Your Tax Breakdown' tab.

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The dividend allowance set by HMRC will also be taken into account on the ‘Your Tax Breakdown’ tab, which is separate to your personal allowance.

This is to ensure you only pay tax on any dividend income above the dividend allowance.

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What about dividends I've received from other companies?

To enter dividends from other sources to help FreeAgent work out your Self Assessment income tax, such as dividends from shares you hold in public limited companies, navigate to the 'Main Return' tab.

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Under 'UK interest and dividends' on the 'Income' section, you can enter your figures in box 4. Remember to enter them exclusive of tax credit. You'll see the amounts of the net dividend and tax credit on the dividend voucher that the company sends you. Include the net amount and ignore the tax credit.

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