Self-Assessment for Investment Income

If you receive income from investments—whether it's dividends from shares, interest from savings accounts, or profits from selling investments—you might need to declare it on a Self Assessment tax return. You must file a Self Assessment tax return if you have untaxed investment income (dividends, savings interest, capital gains) that exceeds certain thresholds, with dividend income over £10,000 requiring Self Assessment filing (gov.uk Self Assessment). Investment income is taxed at different rates: dividends are taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate) after the dividend allowance of £1,000, while savings interest is taxed at normal Income Tax rates (gov.uk tax on dividends). You receive a Dividend Allowance of £1,000 per year (tax-free) and a Personal Allowance of £12,570, meaning you can earn up to £14,570 in dividends with no tax if you have no other income.

The problem is most investors don't realise they need to file Self Assessment until they get a letter from HMRC, or they struggle with understanding what investment income to report, working out tax rates and allowances, knowing when to register, and completing the right forms. That causes problems—missing Self Assessment registration deadlines and penalties, confusion about what income to declare, incorrect tax calculations, and unexpected tax bills at the end of the year.

We handle Self-Assessment for investment income for investors across Kent: investment income review (identifying all your investment income sources including dividends, savings interest, and capital gains), Self Assessment registration (registering you for Self Assessment if needed, ensuring registration by 5 October following the end of the tax year), tax return preparation (completing SA100 main return and SA108 capital gains pages if needed, reporting all investment income correctly), tax calculations (calculating tax due on dividends, savings interest, and capital gains based on your Income Tax band and allowances), allowance optimisation (ensuring you use Personal Allowance, Dividend Allowance, and CGT allowance effectively), and deadline management (filing returns by 31 January deadline and ensuring tax is paid on time). Whether you're an investor in Medway receiving share dividends, a saver in Maidstone earning interest income, or someone in Canterbury selling investments with capital gains, we'll handle your Self Assessment for investment income that works. No missed deadlines, no tax confusion—just proper investment income reporting that keeps you compliant.

What this helps you do (fast)

• Understand what investment income to report — We'll help you identify all investment income that needs declaring, from dividends and savings interest to capital gains. Understanding your obligations helps you stay compliant.
• Register for Self Assessment correctly — We'll ensure you register for Self Assessment if needed, meeting the 5 October deadline to avoid late registration penalties. Correct registration protects you from penalties.
• Calculate tax accurately — We'll work out exactly how much tax you owe on dividends, savings interest, and capital gains, using the right allowances and tax rates. Accurate calculations prevent overpayments or underpayments.
• Maximise your allowances — We'll ensure you use Personal Allowance (£12,570), Dividend Allowance (£1,000), and CGT allowance (£3,000) effectively to minimise tax. Maximising allowances saves you money.
• File returns on time — We'll ensure your Self Assessment return is filed by 31 January deadline, avoiding late filing penalties. Timely filing protects you from penalties.
• Simplify complex investment income — We'll handle the paperwork and calculations, so you don't have to worry about forms, deadlines, or tax rates. Simplifying the process saves you time and stress.

How it works

Step-by-step process for Self-Assessment for investment income:

1. Discovery call — We chat about your investments: what types of investments you have (shares, savings accounts, investment funds, etc.), how much income you receive from dividends, how much interest you earn from savings, whether you've sold any investments during the tax year, whether you're already registered for Self Assessment, and what you want to achieve. Understanding your situation helps us determine what needs reporting.
2. Investment income identification — We identify all investment income that needs reporting:
   • Dividend income — Dividends from shares, investment funds, and other investments (excluding ISAs which are tax-free).
   • Savings interest — Interest from savings accounts, bonds, and other interest-bearing investments (excluding ISAs).
   • Capital gains — Profits from selling investments (shares, property investments, etc.) after deducting purchase price and CGT allowance.
   • Other investment income — Any other investment-related income that's taxable.
   Investment income identification ensures nothing is missed.
3. Self Assessment registration (if needed) — If you're not already registered, we register you for Self Assessment:
   • Registration requirements — We provide your National Insurance number, contact details, and other required information to HMRC.
   • Registration deadline — We ensure registration by 5 October following the end of the tax year to avoid late registration penalties.
   • UTR allocation — HMRC will allocate a Unique Taxpayer Reference (UTR) which is needed for filing returns.
   Self Assessment registration ensures you can file returns and access HMRC online services.
4. Tax calculation — We calculate tax due on your investment income:
   • Dividend tax — Dividends are taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate) after the £1,000 Dividend Allowance, based on your total income (other income plus dividends).
   • Savings interest tax — Savings interest is taxed at normal Income Tax rates (20%, 40%, or 45%) after Personal Allowance, with some savings income potentially within the starting rate for savings.
   • Capital gains tax — CGT is charged on gains above the £3,000 annual allowance (2024/25), at 10% or 20% (or 18% or 24% for residential property) depending on your Income Tax band.
   • Allowance application — We ensure Personal Allowance, Dividend Allowance, and CGT allowance are applied correctly to minimise tax.
   Tax calculation ensures accurate tax liability.
5. Return preparation and filing — We prepare and file your Self Assessment return:
   • SA100 main return — We complete the main Self Assessment form (SA100), declaring all investment income in the relevant sections.
   • SA108 capital gains pages — If you have capital gains to report, we complete supplementary pages SA108 (Capital Gains Tax summary).
   • Other supplementary pages — We complete any other relevant supplementary pages if needed (e.g., SA102 for employment income if applicable).
   • Filing deadline — We file your return online by 31 January following the end of the tax year (or 31 October for paper returns).
   Return preparation and filing ensures compliance and accurate reporting.
6. Tax payment coordination — We coordinate tax payments:
   • Payment deadline — Tax is due by 31 January following the end of the tax year, the same date as the filing deadline.
   • Payment methods — We guide you on payment methods (bank transfer, direct debit, cheque) and ensure payment is made on time.
   • Payment on account — If your tax bill is over £1,000, we explain Payments on Account (advance payments for next year's tax) and help you plan for these.
   Tax payment coordination ensures tax is paid on time, avoiding interest and penalties.

We handle all aspects of Self-Assessment for investment income, from identification to filing. The key is understanding what needs reporting, calculating tax correctly, and ensuring returns are filed and tax is paid on time.

Costs & timelines

Pricing factors:

• Volume of investment income — Higher volumes of dividends, savings interest, or capital gains increase complexity.
• Number of income sources — Multiple investment sources (different shares, savings accounts, investment funds) require more tracking and reporting.
• Capital gains complexity — Multiple investment disposals, calculations of purchase prices, and CGT allowance applications increase complexity.
• Self Assessment registration — New registration vs. existing Self Assessment filing (adding investment income to existing return).
• Supplementary pages needed — SA108 capital gains pages and other supplementary pages add to complexity.

Commonly reported ranges by local providers:

• Simple investment income return (dividends or savings interest only, minimal income): £150–£400 (if already filing Self Assessment)
• Standard investment income return (multiple income sources, moderate income): £250–£600 (including capital gains if applicable)
• Complex investment income return (high volumes, multiple sources, complex capital gains): £400–£1,000+ (including detailed capital gains calculations)
• Self Assessment registration (one-off, if not already registered): £50–£150
• Annual investment income review and return filing: £300–£800 per year

Why Self-Assessment for investment income costs what it does:

• Specialist knowledge — Understanding investment income tax rules, dividend tax rates, CGT calculations, and Self Assessment requirements requires specialist knowledge.
• Calculation complexity — Calculating tax on dividends, savings interest, and capital gains, applying allowances correctly, and determining tax bands requires careful calculation.
• Administrative time — Preparing returns, completing supplementary pages, and coordinating payments takes time.
• Compliance risk — Ensuring accurate reporting protects you from HMRC enquiries, penalties, and interest charges.

Timeline: Self Assessment registration typically takes 1–2 weeks after HMRC processes the application. Return preparation typically takes 2–4 weeks after we receive all investment income information, depending on complexity. Returns must be filed by 31 January following the end of the tax year (or 31 October for paper returns). Tax is due by 31 January following the end of the tax year.

Payment: Tax on investment income is due by 31 January following the end of the tax year. If your tax bill is over £1,000, you may need to make Payments on Account.

No hidden fees. Our price includes investment income review, tax calculation, return preparation (SA100 and SA108 if needed), filing, and payment coordination. Self Assessment registration may be additional if you're not already registered.

Kent (UK) focus

For investors in Kent, whether you're receiving share dividends in Medway, earning savings interest in Maidstone, or selling investments with capital gains in Canterbury, Self Assessment for investment income ensures you stay compliant with tax obligations. Many Kent investors don't realise they need to file Self Assessment until they get a letter from HMRC, or they struggle with understanding what income to report and how to calculate tax correctly. We help local investors identify their investment income, register for Self Assessment if needed, calculate tax accurately, and file returns on time, ensuring they stay compliant while maximising allowances. It's worth getting it right—missing Self Assessment registration can result in penalties, and incorrect tax calculations can lead to overpayments or underpayments.

Common Kent investment income scenarios:

• Share investors — Investors receiving dividends from UK and overseas shares, needing to report dividend income and calculate dividend tax.
• Savings account holders — Savers earning interest from multiple savings accounts, needing to report interest income and calculate tax.
• Investment fund investors — Investors in investment funds receiving dividends and capital gains, needing to report both types of income.
• Property investors — Property investors selling investment properties with capital gains, needing to report CGT on disposals.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent investors are dealing with. Investment income review, Self Assessment registration, tax calculation, return filing—we'll handle your Self Assessment for investment income that keeps you compliant and maximises your allowances.

FAQs