Limited companies – what are dividend vouchers?

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.

For more background to dividends themselves, make sure you read our key guides – what are dividends? and how are dividends taxed?

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 7) Date 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.



 


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