Paying Dividends

CJWCJW New MemberRegistered Posts: 10
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

Comments

  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    You should record the decision to declare a dividend as a board minute and provide each shareholder with a dividend voucher.
  • CJWCJW New Member Registered Posts: 10
    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 WhiteAlice White New Member Registered Posts: 12
    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.
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    CJ

    I have sent a PM on this

    Poodle
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