Paying Dividends

CJW

Hello all,

Please can anyone briefly explain the monthly procedure for a director of his/her own Ltd company on how they can pay themselves a low / minimum wage and also a dividend each month.

I expect the payroll to be run as normall and then to complete the yellow payment slip / book accordingly to be issued with a payment for any tax/nic due.

Although, how do you record the dividends, and what paper work should be issued etc?

Thanks in advance.:confused1:

CJ

deanshepherd

You should record the decision to declare a dividend as a board minute and provide each shareholder with a dividend voucher.

CJW

Hi Dean,

Thanks for the reply. I appreciate your time. I know you are a valued contributor to the forum.

Does the dividend voucher have to be of any specific format? Is there a formal template?

Any other pointers or potential pitfalls you can think off?

Thanks,

CJ.

Alice White

I use a spreasheet which calculates the amount due to the various shareholders that's linked to an individual voucher which goes off to their respective accountants each tax year.

I designed it myself and it does the job.

Poodle

CJ

I have sent a PM on this

Poodle