In one minute
If you pay dividends, you need two things:
- a record of the decision (board minutes or a shareholder resolution), and
- a dividend voucher for each shareholder.
You can only pay dividends from distributable profits under Companies Act 2006 s830. Legislation.gov.uk
GOV.UK says each voucher must show the date, company name, shareholder name(s) and the amount, and you must give a copy to the shareholder and keep a copy for your records. GOV.UK
Why this matters
- Paying a dividend without profits risks an unlawful dividend under company law. Legislation.gov.uk
- Proper minutes and vouchers make year-end, HMRC queries, and funding due diligence far smoother.
- The company doesn’t pay tax on the dividend itself; shareholders may owe Income Tax on what they receive. GOV.UK
What paperwork do you need?
1) Record the decision
- Interim dividend: usually approved by the board (minutes or a written board resolution).
- Final dividend: often needs shareholder approval under your Articles (simple resolution).
This split and approach align with standard UK company law practice referenced in HMRC’s manuals. Always check your Articles. GOV.UK
2) Issue a dividend voucher
- Must include: date, company name, shareholder name(s), amount.
- You must give a copy to the shareholder and keep a copy in your records. GOV.UK
3) Pay and post the entries
- Make the payment and update your bookkeeping so bank, cap table and vouchers agree. (Good governance / best practice aligned with HMRC’s company-law context.) GOV.UK
Key facts (quick scan)
- Dividends only from distributable profits (CA 2006 s830). Legislation.gov.uk
- Voucher is required and you must give/keep copies. GOV.UK
- Board minutes for interim; shareholder approval may be needed for final (check Articles). GOV.UK
- Company doesn’t pay tax on dividends; shareholders may pay Income Tax. GOV.UK
Step-by-step (so you don’t miss anything)
- Check profits: confirm you have distributable profits. Legislation.gov.uk
- Approve: board minute for interim; shareholder resolution if your Articles require it for final. GOV.UK
- Prepare vouchers: one per shareholder with the required fields; give and keep copies. GOV.UK
- Pay & post: pay the cash and update your accounting records. GOV.UK
- File: keep minutes/resolutions and vouchers with your company records (easy to find later). GOV.UK
Copy-paste templates
(A) Board Minutes — Interim Dividend
[COMPANY NAME] (the “Company”)
Company number: [NUMBER]
Minutes of a meeting of the Board of Directors held at [PLACE or “video call”] on [DATE] at [TIME].
Present: [Director Name], [Director Name] (the “Directors”)
Chair: [Name]
- Quorum and notice
The Chair noted that due notice had been given and a quorum was present. The meeting was declared open. - Profits available
The Board reviewed the management accounts to [DATE] and noted that the Company has distributable profits sufficient to pay a dividend (Companies Act 2006, section 830). - Declaration of interim dividend
It was resolved to declare an interim dividend of £[AMOUNT] per [SHARE CLASS] share, payable on [PAYMENT DATE], to shareholders on the register at [RECORD DATE]. The total amount to be paid is £[TOTAL]. - Administration
The Directors instructed that dividend vouchers be prepared and issued to each shareholder and that the accounting records be updated accordingly.
There being no further business, the Chair declared the meeting closed.
Signed: [SIGNATURE LINE]
Name: [Director Name], Director
Date: [DATE]
(Use a written board resolution if you prefer. Check your Articles for any special rules.)
(B) Dividend voucher — one per shareholder
[COMPANY NAME]
Company number: [NUMBER]
Registered office: [ADDRESS]
Dividend Voucher
Shareholder: [FULL NAME]
Address: [ADDRESS]
Share class: [e.g., Ordinary]
Number of shares: [NUMBER]
Dividend rate: £[AMOUNT] per share
Gross dividend: £[TOTAL AMOUNT]
Payment date: [DATE]
Record date (if used): [DATE]
Signed for and on behalf of [COMPANY NAME]:
[Signature line]
[Director Name], Director
Date: [DATE]
(This covers the required items: date, company name, shareholder name(s), and amount. Keep a copy for your records and give a copy to the shareholder.)
Common mistakes (avoid these)
- Paying a dividend with no profits → This risks an unlawful dividend. Always check distributable profits first (CA 2006 s830). Legislation.gov.uk
- No vouchers on file → GOV.UK says you must give a voucher to each shareholder and keep a copy. Don’t skip it. GOV.UK
- Assuming a formal meeting is always required → What matters is a valid decision and a record. For interim dividends, board minutes or a written board resolution are standard; for final dividends check your Articles for shareholder approval rules. GOV.UK
FAQs (short, direct)
What must be on a UK dividend voucher?
Date, company name, names of the shareholders being paid, and the amount of the dividend. Give a copy to each person and keep a copy. GOV.UK
Who pays tax on dividends?
Not the company. Shareholders may pay Income Tax on their dividend income. GOV.UK
Do I need a board meeting to pay an interim dividend?
You need a proper approval and a record (minutes or written board resolution). Many companies keep short minutes even if the meeting is by video or written resolution. Check your Articles. GOV.UK
Can I backdate minutes or vouchers?
No. Create them at the time you declare/pay the dividend and file them with your company records. GOV.UK
Related guides (internal links)
- How to Pay Yourself as a Limited Company Director (UK 2025/26) — salary vs dividends, worked examples
- NIC, PAYE & Pension Costs (UK 2025/26) — total employer cost picture
- Payroll Services UK — scope, typical costs, compliance calendar
- Cashflow Forecasting Services — 52-week forecast so dividends don’t stress cash
Next Steps
Want a quick check that your dividend minutes and vouchers are right?
Book a 20-minute planning call and we’ll sense-check your approach so you can pay dividends with confidence.