Dividend date

[moorfield]

If my ltdco issues a dividend voucher dated 31 March, but it's not paid to me until after 6 April - for self assessment will that count against my 2007/08 or 2008/09 income ?

[Sockpuppet]

I'm pretty sure its the date its declared.

Not sure why this is an issue. If you want to to fall in the next tax year then just declare it next year. If you want it to fall in this tax year just declare it this year.

[moorfield]

Not sure why this is an issue.

I'm one of those dirty income shifters that people don't like, so trying to make maximum use of the wifes allowances while I can.

[Hex]

I reckon it's the date it's paid that counts. But IANAA.

[Hex]

If you think about the way big companies (e.g. Lloyds) pay out dividends, they declare them months before they actually pay them. It is the date they pay them and you receive the money in your grubby little mits that counts as far as tax is concerned. So I reckon it must be the same for us.

[crack_ho]

My accountant told me its the date it is paid that counts as I have been in this situaion before.

[Sockpuppet]

Which brings up the interesting question of if you declare divis on the 31st March does paying them in April fall fould of the S660 rules.

[moorfield]

Agree with you Hex and crack_ho - that makes sense to me. Will check with my accountant too. Thanks.

[Platypus]

If my ltdco issues a dividend voucher dated 31 March, but it's not paid to me until after 6 April - for self assessment will that count against my 2007/08 or 2008/09 income ?

My accountant told me that divs should be paid on the date they are declared, although this seems contrary to what other replies say they were told.

I assume that it's the date of declaration which counts and money not actually paid out on that date will be deemed to have been paid into the director's loan account on the date of declaration.

[Lewis]

My accountant told me that divs should be paid on the date they are declared, although this seems contrary to what other replies say they were told.

I assume that it's the date of declaration which counts and money not actually paid out on that date will be deemed to have been paid into the director's loan account on the date of declaration.

I wonder if it is down to whether or not you do cash accounting? I'm cash accounting so I use dates from my bank statements for everything. I pay in a cheque to my personal account the day the dividend is declared and enter it in my accounts as the date it leaves my business account. If just transferring into loan account (i.e. not on a business bank statement) I would use the dividend declaration date).