Dividend paperwork: what UK directors should keep

A dividend voucher is useful, but it isn't the only thing a company needs to consider before paying dividends.

Check the company can pay the dividend

Dividends may only be paid from profits available for distribution. Review relevant accounts and take advice when there is uncertainty.

Document the decision

Record the appropriate company decision in accordance with the company's articles and the type of dividend being paid.

Prepare a dividend voucher

Record key payment details, including the company, shareholder, dividend amount and date, and retain it with company records.

Update bookkeeping and records

Record the dividend correctly and keep supporting documentation. The tax treatment for the shareholder is separate from the company's accounting entry.

General information, not legal or personal tax advice. Company articles and circumstances may require additional steps.