How to use it
- 1Hold the directors' meeting first and minute the decision to declare the dividend. GOV.UK says to do this even if you're the only director.
- 2Check the company has enough available profit, from this and previous financial years, to cover the dividend.
- 3Fill in one voucher per shareholder per payment. Replace every [square bracket] placeholder.
- 4Give a copy to the shareholder and file one with the company's records.
What each field means
- Company name and number
- As registered at Companies House.
- Date of payment
- The date the dividend is paid.
- Shareholder
- The name of the shareholder receiving this payment.
- Shares held and dividend per share
- How the total was worked out, so the voucher ties back to the share register.
- Amount
- The total dividend paid to this shareholder.
- Signed
- Signed by a director or the company secretary.
What a dividend voucher has to show
GOV.UK's guidance on taking money out of a limited company lists four things every dividend payment needs on its voucher: the date, the company name, the names of the shareholders being paid, and the amount. Each recipient gets a copy and the company keeps one.
The template adds the company number, the shares held and the dividend per share, so each voucher ties back to the share register and the board minute.
Before you issue one
A company can only pay dividends out of available profits from the current and previous financial years, and dividends usually have to be paid to all shareholders. Directors declare the dividend at a meeting and keep minutes, even in a one-director company.
The company doesn't pay tax on dividends, but shareholders may owe Income Tax once their dividends pass the £500 dividend allowance.
Licence and disclaimer
Free to use, copy and adapt for your own business or personal records. Please don't resell it or republish it as your own template.
A template is a starting point, not advice for your circumstances. Check the result against the GOV.UK guidance linked below, or ask an accountant.
Related
What else will you need?
- ChecklistLimited company year-end checklistAt a limited company's year end, reconcile every bank and loan account, list unpaid invoices and bills, count stock, record asset purchases, review the director's loan account and check dividends were minuted.
- SA100SA100 tax returnThe SA100 is HMRC's main Self Assessment tax return.
- TemplateMileage logA mileage log records each business journey: the date, where you went, why, and the miles.PDFExcel
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
Do I need a dividend voucher if I'm the only shareholder?
Can a company pay a dividend if it made a loss this year?
Only if it has enough available profits from previous financial years to cover it. A company can't pay out more than its available profits.
Is tax deducted from a dividend?
No. The company doesn't deduct tax. Shareholders pay any Income Tax due on dividends above the £500 allowance, usually through Self Assessment.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: Taking money out of a limited company (opens in a new tab) (GOV.UK).