Dividend vouchers and board meeting minutes - printed or electronic copies?

[northernladuk]

I think it's payable immediately but I don't think there is any obligation to pay it if the shareholder agrees to defer the payment.

It's an interesting question because raises the possibility of declaring a dividend retrospectively (eg, into a previous tax year) and then taking the money. Whatever the legality of doing this, no one would ever be able to prove that the dividend wasn't actually declared on the day the director claims it was...

Yep, I think we have had some posts about dividend payments and declarations when people cock up around April the 5th. I seem to remember it is the day it is declared that counted but would have to check that to make sure.

[d000hg]

Hadn't thought about the logical extension of retrospective dividends as described but I guess it makes sense... once you're only creating vouchers on request you could do this.

[lithium147]

Hadn't thought about the logical extension of retrospective dividends as described but I guess it makes sense... once you're only creating vouchers on request you could do this.

Well you could retrospectively declare dividends for the previous accounting period, as long as they dont go into the previous tax year (where SA has been submitted), as you need to declare your dividend income in your self assessment.

[SueEllen]

I think it's payable immediately but I don't think there is any obligation to pay it if the shareholder agrees to defer the payment.

It's an interesting question because raises the possibility of declaring a dividend retrospectively (eg, into a previous tax year) and then taking the money. Whatever the legality of doing this, no one would ever be able to prove that the dividend wasn't actually declared on the day the director claims it was...

Cheques have a six month validity and not everyone cashes cheques on time.

[psychocandy]

Yep, I think we have had some posts about dividend payments and declarations when people cock up around April the 5th. I seem to remember it is the day it is declared that counted but would have to check that to make sure.

Definitely day the dividend is declared that is important.

You can declare a dividend but the not pay it out for 6 months if you want but its the date on paperwork that counts.

[TheCyclingProgrammer]

Oldish thread, but for the avoidance of doubt and for anybody else reading this in the future, you most definitely do not need to print out your dividend vouchers - you just need to print and sign your board minutes (although I guess you could digitally sign these too).

Vouchers can be sent electronically and the legislation is there to back it up. HMRC also make this pretty clear on their website.

As mentioned earlier on the thread:

If you have agreed to get your dividends paid electronically you may get your dividend voucher in paper or electronic form.

Source: HM Revenue & Customs: Tax on UK dividends

In 2003 further provisions to ICTA88/S234A were introduced under SI2003/3143 to allow statutory dividend vouchers and tax deduction certificates to be sent by electronic means. The regulations do not prescribe the methods of electronic communication that must be used, but possibilities include sending PDF files by e-mail or making the voucher or certificate available on a secure website for the recipient to download.

Source: CTM47575 - Investment trusts: interest distributions: tax vouchers - basic rules for sending tax information to recipients

The actual legislation:
The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) Regulations 2003

The only thing that isn't entirely clear is whether or not the electronic copies still need to be signed (digitally or otherwise), so maybe best to sign them electronically (using either a scanned signature or some kind of e-signature service) to be safe.