When can dividends be paid?
A company should only declare dividends from available distributable profits. Directors should review the accounts and approve the dividend before it is paid.
What paperwork is needed?
Keep board minutes, dividend vouchers, the amount paid, the payment date and the shareholders receiving the dividend. The company should retain the supporting accounts.
How are dividends taxed?
Shareholders may need to report dividend income above the applicable allowance. Rates and allowances vary by tax year and should be checked before filing.
Official sources.
Check the current guidance before you rely on a rate, threshold, deadline or relief.
Need help with dividend records?
Swift Accountancy can prepare accounts, review dividend paperwork and discuss the tax reporting position.
Discuss dividend support