Find out why a dividend tax certificate needs to be issued, what they look like and download a dividend tax voucher template to use.
What is a Dividend?
A dividend is a payment made to shareholders of a company from post-tax profits. They are declared by the Board of Directors of the company at an official board meeting. Dividends are a form of taxable income in the UK and are subject to dividend tax so need to be reported on a self-assessment tax return, in some cases. That means a dividend certificate needs to be issued to support any dividend payments made.
What is a Dividend Tax Certificate?
A dividend tax certificate is an official document issued by the business paying the dividend with details of the amount being paid per share, the recipient and the date issued.
Do You Need a Dividend Tax Voucher as a Sole Director Company?
If you are set up as a Limited Company, then you’ll need to issue a dividend tax voucher even if you are the sole director and shareholder. It is a legal requirement to issue dividend tax vouchers every time a dividend is paid. You’ll need to issue paperwork to yourself and:
- Hold a directors meeting to declare the dividend;
- Write up minutes of that meeting;
- Preparing a dividend tax voucher.
Dividend Tax Voucher Template UK
Here is a dividend tax voucher template for you to fill out and keep on file for your Limited Company.
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.