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Free impartial start-up advice From pcg.org.uk, the association supporting freelance contractors |
Limited company dividend vouchers and board meeting minutes
Posted Oct 12, 2009
If your limited company has made a profit, you are entitled to distribute these profits to shareholders in as dividends.
When you do decide to declare a dividend, you must not only record the event in Company minutes, but also create a dividend voucher for each shareholder.
The voucher is a "receipt" of sorts, and is kept by the recipient for self assessment purposes.
For more details about what dividends are, how to account for them, and how much tax is payable, visit our guide to limited company dividends.
What information should a dividend voucher contain?
1) Limited company name and number
2) Shareholder name and address
3) Description of security (e.g. "Ordinary Shares")
4) Number of shares owned by shareholder at the time
5) Tax credit
6) Dividend amount paid
7) Date
8) Signature of company officer
We've provided an example dividend voucher below:
Dividend Voucher
Limited Company Name
Limited Company 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
Shareholder Address
-----
No. of ORDINARY SHARES:
Dividend Payment:
Tax Credit:
----
Signed By:
Director / Company Secretary
The Company board meeting minutes
By law, the limited company must keep a record of the dividend declaration via board meeting minutes, signed by an officer of the Company (a director or company secretary if you have one).
If you are in any doubt, your accountant will be able to advise you on the format of such minutes with ease.
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]."
Further Information
Limited company contractors - what are dividends?
Salary vs. Dividends
How much tax to pay on limited company dividends
How much money can I distribute as dividends?
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