If you run a limited company, you can distribute any profits you make via dividends to your shareholders. But how do you keep a record of dividend distributions?
Once you have ensured that you have legitimate profits to distribute, you must also make sure that you record your decision to declare dividends via company minutes, and issue each company shareholder with a dividend voucher.
This voucher acts as a “receipt”, and should be kept as evidence for tax purposes, when working out your self assessment at the end of the tax year.
Dividend Vouchers – Required Information
1) Ltd Company Name, Company Number
2) Name and Address of Shareholder
3) Type of Security (e.g. “Ordinary Shares”)
4) No. of shares owned by Shareholder
5) Amount of Tax Credit
6) Dividend Amount Paid
8) Signature of Company Officer
We have also provided an example dividend voucher below. We recommend you check with your accountant if you have any questions about declaring declarations.
Ltd Company Name & Registered Address
The board of directors of YOUR COMPANY LIMITED met at [ADDRESS] on [DATE] and declared an interim dividend of £X per Ordinary Share in respect the financial year ended [YEAR END DATE] payable to shareholders registered at the close of business on [DATE].
Shareholder Name & Address
No. of Shares (and type of Share – usually “ORDINARY SHARES”)
Company Official (e.g. Director / Company Secretary).
Board Meeting Minutes
Limited companies are legally obliged to keep records of all dividends made, via board meeting minutes.
An example statement from board meeting minutes would be:
“It was resolved that an interim dividend of £X per Ordinary Share in respect of the year ended [YEAR END DATE] be declared on the Ordinary shares and payable on [DATE] to Ordinary shareholders registered at the close of business on [DATE].”