Did you know that if you don’t complete the proper paperwork each time you vote a dividend the taxman can argue it was actually a bonus and NIC’s are payable on the amount?
If your limited company has made a profit, you are entitled to distribute these profits to shareholders 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 for template vouchers and meeting minutes please send an email to taxsorted(at)googlemail.com and we will be happy to send you the templates you need.
Remember – if you DON’T do this you are at risk of paying extra tax on your dividends. You have been warned!