I'm new here and just looking for some advice.
I've had the annual letter through from HMRC regarding Tax code notice.
It states Total Tax free amount £9702 and tax code 970L
I Pay myself a basic £830.00 per Month and last year i took a dividend of £4995.00.
What i would like to know is why has my tax code changed? i asked my accountant and they said
it is because i received a Dividend on your last tax return and they are taxing you at source on this. This will always be the case until you don't receive a Dividend on your tax return.
Is this correct, i have no accountancy knowledge, but i thought i was allowed to earn up to £11500 without paying income tax and i could also take a dividend up to £5000 anything over the £5000 i would pay 7.5% or have i got this really wrong and my accountant is correct.
Thanks for any advice