paulr Registered Posts: 48 ? ? ?
Good morning,
I just need clarification on Dividend payments by Ltd Companies to Shareholders;
What date determines when the Dividend is deemed received by the Individual under Self assessment tax returns;
Is it the Date withdrawn from the Bank account or Date showing on DLA or is when resolution is dated?



  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Date it's declared - either by way of dividend voucher/ minute meeting (in an ideal world) or the date it's credited to the shareholder in the company's books.

    Not on receipt of cash, unless those dates are the same.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    I may be confused but I thought for the self assessment the income from investment (here dividends) was assessed on a cash-basis. So the date the cash is actually received.
    Whereas for a company it's the date the liability is created (date of declaration or payment).

    But I'm still learning so please do not hesitate to correct me on this!
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    Sorry, I'm purely talking about dividends from Owner-Managed companies here, where actual cash paid out is not so relevant, it's more the actual timing of the declaration of dividends.

    In the case of 'external' shareholders then yes, MarieNoelle, you're right. It's just like bank interest in those cases.
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