Dividends and Dividend Vouchers
A dividend is a sum of money paid regularly by a company to its shareholders out of their profits. Dividends can be paid as cash payments, as shares of stock, or other property.
Tax on dividends from April 2016
From 6 April 2016, you won’t pay tax on the first £5,000 of dividends that you get in the tax year. This is from 6 April to 5 April the following year. Above this allowance, the tax you pay depends on which Income Tax band you’re in. Add your income from dividends to your other taxable income when working this out. You may pay tax at more than one rate.
Create a dividend voucher
You can create a dividend voucher if you have a wholesale account:
- Go to My Companies (login required) and click on your company name.
- Click the Quick Links arrow and select Dividends from the menu.
- Now click the Add Dividend button.
In the next screen, you will be prompted to enter the Dividend information. Once entered, click Save. The Dividend will be available to view immediately.
You can also print or remove a dividend, print meeting minutes, etc, by selecting the appropriate options.