When can I take out the dividend

[dmo]

So i declared a dividend a short while ago and accountant said I'd get a dividend voucher from HMRC. I was wondering though, when can I take out my dividend? Do I need to wait till the year end or something? The dividend was for 12/13, and it's still in the company account. Is it ok to just take it out?

[TheFaQQer]

I take mine out as soon as I have declared it and printed the paperwork.

[dmo]

I take mine out as soon as I have declared it and printed the paperwork.

Cool. Do you find you have to use the voucher as well?, and is that at the year end (April)?

[Craig at Nixon Williams]

You don't receive the dividend voucher from HMRC, this will be issued by your company to you (the shareholder) so you should create this yourself or your accountant may do it (we do this for our clients).

Be careful with the paperwork - an interim dividend (voted for by directors rather than the shareholders passing a resolution) is taxable at the date that the money is paid rather than the date that the dividend is declared - for your dividend to be taxed in 2012/13, a resolution will need to have been passed by the shareholders for this before 5th April.

Hope this helps!
Craig

[TheFaQQer]

Cool. Do you find you have to use the voucher as well?, and is that at the year end (April)?

You don't get a voucher from HMRC. I write the board minutes, and I generate the voucher which details the dividend value and tax credit etc.

Have a look at Declaring dividends: the paperwork - dividend counterfoils and company board minutes for examples - I just googled "dividend voucher template" to see, and someone on here has produced a spreadsheet, which is what I use these days.

[bluetoaster]

I just googled "dividend voucher template" to see, and someone on here has produced a spreadsheet, which is what I use these days.

+1

[psychocandy]

You don't receive the dividend voucher from HMRC, this will be issued by your company to you (the shareholder) so you should create this yourself or your accountant may do it (we do this for our clients).

Be careful with the paperwork - an interim dividend (voted for by directors rather than the shareholders passing a resolution) is taxable at the date that the money is paid rather than the date that the dividend is declared - for your dividend to be taxed in 2012/13, a resolution will need to have been passed by the shareholders for this before 5th April.

Hope this helps!
Craig

??? So money has to leave the account in the tax year?

[Craig at Nixon Williams]

??? So money has to leave the account in the tax year?

It depends on how the dividend was voted and documented - an interim dividend voted for by the directors or a company only becomes taxable when it is actually paid because such a dividend which has not had shareholder approval can be amended or rescinded up to the point that it is paid.

A final dividend (where a resolution has been passed by the shareholders) becomes a liability of the company on the date that the paperwork specifies.

SAIM5040 - Dividends and other company distributions: company law

Craig