Freelance Forum \ Tax/VAT Discussion & Questions \ what should be the correct date on dividend vouchers

what should be the correct date on dividend vouchers

15/05/2010 20:52:32
Kitty
Posts: 2
Registered: 15/05/2010 Report this post!
I've found a wording template for dividend voucher, saying :
"The board of directors of YOUR COMPANY LIMITED met at [ADDRESS] on [DATE] and declared an interim dividend of £X per Ordinary Share in respect the financial year ended [YEAR END DATE] payable to shareholders registered at the close of business on [DATE]." I formed my company on the 14th of March and the first salary and dividends i payed on the 27th of Apr and 30 th of Apr correspondinly. Now i want to issue a dividend voucher and going to replace the wording "in respect the financial year ended [YEAR END DATE]" with "in respect the period ended [PERIOD END DATE]", but as i've alredy paid dividends on the 30th of April, i don't know if it's correct to put the let's say 25th as a period end date(any date before the dividends were actually paid). What can be the correct date in my case, should it be always the last day of the month?
11/06/2010 10:05:38
Amie@Qdos
Posts: 44
Registered: 25/06/2009 Report this post!

Hi Kitty, many apologies for the delay in getting back to you.  We have rectified some problems on the site now which won't allow this happen again. 

In answer to your query - generally, once the board agrees to distribute dividends, you must indicate the fact in the Minutes of the Board Meeting which becomes part of your company records. These records should be dated and completed before the dividend is actually paid.  I would suggest dating this either on the day of the payment or before the payment is made.

Dividends, which are portions of company profit after tax and expenses, can be paid at any time you feel you have enough in profit to distribute them, therefore the date doesn’t necessary need to be last day of the month.

I hope this helps.

Kind regards

Amie

24/06/2010 14:25:37
cshill
Posts: 1
Registered: 24/06/2010 Report this post!
What is the date that determines which tax year a payment falls in to? e.g. If a dividend payment leaves the company bank account on the 5th of April but then takes a couple of days to clear and credits my personal account on the 7th, which year does it belong to?
28/06/2010 16:22:16
Seb@Qdos
Posts: 10
Registered: 08/06/2009 Report this post!
It is the date that the payment leaves, so in your example it would be the 5th.

Page 1
1

Reply with a message