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HMRC internal manual

Employment Status Manual

Particular Issues: claims for relief in respect of dividends - how to handle claims


Paragraph 13 Schedule 12 Finance Act 2000/Section 58 ITEPA 2003

Regulation 6(3) SI 2000 No. 727

Where a claim has been made for a dividend to be paid without further liability arising, then assuming that all of the relevant information has been provided staff should:

  • check that the amounts in question reconcile and, where satisfied that a valid claim has been made, issue a letter accepting the claim
  • Place a copy of the claim and acceptance in the next accounts pad of the company concerned (the deemed payment and the secondary NICs on it are deducted from the CT profits for the accounting period in which they are treated as paid. A check can be made that the correct amount has been deducted when the relevant CTSA return is submitted).
  • Send an e-mail 41A to the SA office for each person in respect of whom a claim has been made providing that office of details of the claim and that it has been accepted. Where a dividend has been matched it does not need to be returned on the recipient’s SA return and the relevant office will need to be aware of this should a Section 9 enquiry be raised. The SA office should record the details of the claim on the individual’s SA record on the SA Notes.