Dividend tax 7.5% adjusted in PAYE coding for 2016/17

I have just been forwarded a tax code notification from a client which shows an adjustment for dividend tax in the PAYE tax coding notice.  Am I right to assume this is just HMRC's way of collecting tax as soon as possible rather than waiting for January 2018.

  • Yes, I have encountered this too.  There is nothing in the accompanying notes to suggest HMRC will remove the dividend tax adjustment on request.  Which rather leaves one wondering what to do next.

    I rang HMRC.  They advised me that so long as the client is in self-assessment they would, upon request, be willing to remove the dividend adjustment from the code.

    Something to discuss with clients.