A dividend is a payment a company can make to shareholders if it has made enough profit.
You can’t count dividends as business costs when you work out your Corporation Tax.
Your company mustn’t pay out more in dividends than its available profits from current and previous financial years.
You must usually pay dividends to all shareholders.
To pay a dividend, you must:
hold a directors’ meeting to ‘declare’ the dividend
keep minutes of the meeting, even if you’re the only director
For each dividend payment the company makes, you must write up a dividend voucher showing the:
names of the shareholders being paid a dividend
amount of the dividend
the amount of the ‘dividend tax credit’