Example Dividend Voucher/Board Room Minute for Dividend Payed This Tax Year

[TheFaQQer]

Yes, I do the same thing, both my wife and I are set up as directors and shareholders in FreeAgent, its just that the dividend paperwork sounds a bit odd the way it's written, i.e., with a 50/50 split you'd expect board minutes saying e.g. "Dividend of £x per share, total: £1000" and two vouchers for £500 each, but instead you end up with two board minutes each saying £500.

I guess it doesn't make a massive amount of difference in the end.

My preference to show clearly that one dividend is declared is to create a journal set showing the two dividends according to the shareholder split and credit each one to the respective director loan account and then simply explain bank payments in respect of these as payments from the DLA. It still creates two sets of board minutes and vouchers but I think it makes it clearer it's a single dividend.

I generate my own paperwork and attach it to the bank transaction, just in case.

[TheCyclingProgrammer]

@CP, in the case of several shareholders, we tend to set up each as a user within FA, that way payments to each shareholder can be allocated to themselves so that they have dividends vouchers generated in their own name. There are instances where a client makes one payment to try and cover 2 shareholders (husband/wife) but there's a work around in these instances then advise the clients to make separate payments to each shareholder going forward.

Yes, I do the same thing, both my wife and I are set up as directors and shareholders in FreeAgent, its just that the dividend paperwork sounds a bit odd the way it's written, i.e., with a 50/50 split you'd expect board minutes saying e.g. "Dividend of £x per share, total: £1000" and two vouchers for £500 each, but instead you end up with two board minutes each saying £500.

I guess it doesn't make a massive amount of difference in the end.

My preference to show clearly that one dividend is declared is to create a journal set showing the two dividends according to the shareholder split and credit each one to the respective director loan account and then simply explain bank payments in respect of these as payments from the DLA. It still creates two sets of board minutes and vouchers but I think it makes it clearer it's a single dividend.

[Darren at Fox-Bartfield]

Shareholders

Out of interest Darren, for your clients who have multiple shareholders, do you recommend they generate their own dividend paperwork or do you consider the FreeAgent paperwork sufficient (bearing in mind it can't generate a single dividend/board minutes with multiple vouchers for multiple shareholders, you can only generate a set of dividend paperwork for each individual payment)?

@CP, in the case of several shareholders, we tend to set up each as a user within FA, that way payments to each shareholder can be allocated to themselves so that they have dividends vouchers generated in their own name. There are instances where a client makes one payment to try and cover 2 shareholders (husband/wife) but there's a work around in these instances then advise the clients to make separate payments to each shareholder going forward.

[TheCyclingProgrammer]

If you're on Freeagent, the system will generate the vouchers for you.

Out of interest Darren, for your clients who have multiple shareholders, do you recommend they generate their own dividend paperwork or do you consider the FreeAgent paperwork sufficient (bearing in mind it can't generate a single dividend/board minutes with multiple vouchers for multiple shareholders, you can only generate a set of dividend paperwork for each individual payment)?

[Darren at Fox-Bartfield]

Dividends

If you're on Freeagent, the system will generate the vouchers for you.

[TheCyclingProgrammer]

Paperwork looks fine. As others have said, just make sure you have enough retained profit to cover the amount.

[oilboil]

Is it the only interim dividend you have declared in the year? It's good form to include a running total of interim dividends paid (not necessary if you only intend to do one interim dividend)

[SueEllen]

^^^^ what WFTH said.

If you aren't sure always ask your accountant.

[WTFH]

Your accountant would be able to help you, we don’t have all the figures, e.g. does your company have enough money to pay this dividend and still pay the CT and VAT bills?
Are you trying to do this efficiently, if so, how much have you paid yourself, and how much have you paid in dividends this year so far?
Etc.

[wellso]

Hi all,

I am raising a dividend for the current tax year and wanted to make sure I have created them in the correct manner. Would anyone mind casting an eye over them to make sure I've done them correctly before I issue them?






BOARD MEETING MINUTES

My Company Ltd

Held on 17/11/2017 at 20 Made Up Avenue, That Place, MU1 9SX

Present: John Doe

It was resolved that the Company pay an interim dividend of £9500 per
£1 Ordinary Share in respect of the year ending 31st July 2018 to
those shareholders registered at the close of business on 17/11/2017.

There being no further business, the meeting was closed.


——————————
John Doe 17/11/2017

My Company Ltd
12345678
20 Made Up Avenue, That Place, MU1 9SX




TAX VOUCHER

My Company Ltd

Dividend for the year ended 31st July 2018 payable to shareholders
registered at the close of business on 17/11/2017.

Shareholder: John Doe

No. Ordinary Shares: 1
Dividend Rate: £9500
Dividend Payable: £9500



——————————
John Doe 17/11/2017

My Company Ltd
12345678
20 Made Up Avenue, That Place, MU1 9SX