When to issue dividend voucher

When to issue dividend voucher

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At the risk of this sounding like a dense question, do you have to wait for the company's year end before issuing the dividend voucher or are they issued as the dividends are taken? I'm talking a small 1 director company, not a huge corporation.

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Euan's picture
By Euan MacLennan
12th Mar 2017 11:03

No - you don't have to wait, although you could and issue just the one voucher for multiple dividends taken in the year, just like the huge corporations. However, it is probably easier and safer to issue a voucher as each dividend is taken.

Thanks (1)
Chris M
By mr. mischief
12th Mar 2017 12:54

I issue one voucher covering all dividends during a given tax year. This makes it easy for those clients who do their own tax returns - and me too! - to see exactly what amount is the right one for self-assessment.

This will become more important shortly as the first tax returns featuring the dividend tax become due.

If you want a copy of my Excel voucher file send me a PM.

Thanks (1)
Chris M
By mr. mischief
12th Mar 2017 12:56

Before someone jumps in - and they will! - I should add that I add a line to the voucher each quarter when dividends are declared. So for my standard vouchers I am currently adding in a line for the 31 March 2017 dividend.

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Replying to mr. mischief:
Euan's picture
By Euan MacLennan
12th Mar 2017 14:20

Of course they will jump in when they haven't a clue what you are trying to say.

"Add a line" saying what exactly? Why would you "currently" be doing vouchers for dividends payable at the end of the month?

Thanks (0)
Jennifer Adams
By Jennifer Adams
12th Mar 2017 17:37

You can issue just one....
See article: Dividends: are minutes necessary https://www.accountingweb.co.uk/business/finance-strategy/dividends-are-...
Which states:
"There is no mention of vouchers in the CA 2006 but one is required for tax purposes under s1104 CTA which states that if a dividend payment is made into a bank account then a certificate of tax deduction must be issued, “within a reasonable period”.
Paperwork can be kept to a minimum by the use of a single voucher to cover payments made over the previous tax year. The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) Regulations 2003 (SI 3143/2003) authorises the electronic delivery of dividend vouchers, the default position being that shareholders receive a hard copy but must ‘opt in’ to receive e-counterfoils.'

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Chris M
By mr. mischief
12th Mar 2017 18:16

For exactly the same reason, Euan, that Vodafone PLC is currently doing a dividend which will be paid out in May or June.

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Replying to mr. mischief:
By SteveHa
12th Mar 2017 19:10

Just because Vodafone do it doesn't make it either right or wrong. See J J Adam's reply, which confirms the correct position.

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