Dividend voucher and board meeting minutes template
When a limited company’s directors declare a dividend, two documents must be produced – board meeting minutes and a dividend voucher for each shareholder, writes Zeeshan Anwar, head of compliance at Dolan Accountancy.
What are dividend vouchers?
Dividend vouchers validate the moment a company shares its profits with its shareholders. They play an important role in documenting the distribution of company profits to shareholders and serve as official records, providing transparency and proof of income received.
The dividend voucher must include:
- Company name
- Company registration number.
- Company address.
- Date of issue.
- Name and address of the shareholder.
- Class of share (e.g. ‘ordinary’).
- Type of dividend (‘interim’ or ‘final’).
- Dividend amount.
- Signature of a company officer.
Typically, dividend vouchers are prepared by the company’s accountant, who will record the dividend payments and make sure that everything is accurate and compliant.
Dividend voucher template
[INSERT COMPANY NAME]
Dividend in respect of the year ended [INSERT COMPANY’S YEAR END DATE] payable to shareholders registered at the close of business on [INSERT DATE OF PAYMENT].
Shareholder: [INSERT SHAREHOLDER’S NAME]
| No. Ordinary shares | Dividend Rate | Dividend Payable |
| X | £X | £X |
——————————
[INSERT DIRECTOR NAME]
[INSERT DATE]
Keep this voucher in a safe place.
[INSERT COMPANY REGISTERED ADDRESS AND/ COMPANY NUMBER]
What are board meeting minutes?
By law, a limited company must keep a record of the dividend declaration via board meeting minutes, signed by an officer of the company.
It's essential to include:
- Company name.
- Company registration number.
- Company address.
- Date of the meeting.
- The amount of dividend to be paid per share.
- Type of dividend (‘interim’ or ‘final’).
- The payment date for the dividend.
- Name of all attendees present.
- Signature of a company officer.
If your business has more than one director, it is important to add the names of all directors present in the meeting to show common consent to the payment of dividend.
Board minutes meeting template
[INSERT COMPANY NAME]
Held on [INSERT DATE] at [INSERT ADDRESS]
Present: [INSERT NAMES OF ALL PRESENT]
It was resolved that the company pay an interim dividend of £xxxx per £x ordinary share in respect of the year ended [INSERT COMPANY’S YEAR END DATE] to those shareholders registered at the close of business on [INSERT DATE OF PAYMENT].
There being no further business, the meeting was closed.
——————————
[INSERT DIRECTOR NAME]
[INSERT DATE]
[INSERT COMPANY REGISTERED ADDRESS AND COMPANY NUMBER]
Lastly, don’t cut corners
Paperwork can sometimes seem like a distraction from your running your contractor business, but it is essential to clearly declare your dividends with the correct procedures and documentation! Without this HMRC can challenge the payment, making you liable to additional national insurance and tax on the payment.
