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Company ValuationSafeguard Your Dividends: A Simple and Essential Dividend Voucher Template for Your Business
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Richard Jackson - 15/10/2023
Are you a business owner who would like to maximise tax savings by blending salary with dividends? If so, you might be inadvertently leaving yourself exposed to potential HMRC compliance challenges if your paperwork needs to be completed.
If you're thinking, "That's ok, my accountant takes care of that, "……err, no, they probably don't and here's why.
Your accountant will see your total drawings at the end of the year and work out the best tax treatment for the money drawn; however, you are probably taking a monthly dividend throughout the year to top up your salary. If you do this, you are overlooking one critical yet often neglected aspect, which is the need for dated individual dividend vouchers to be issued each time dividends are distributed. These vouchers serve as internal records, so they are essential for HMRC compliance.
Here's a simple litmus test for you: Have you ever received a copy of a Dividend Voucher from your accountant?
Dividend for the year ended {your company year end date} payable to holders registered on {date of meeting}. Date of payment {date of payment}.
Holding:
Dividend Rate:
Dividend Payable:
{number of shares held by shareholders} Ordinary Shares
£{amount} per share
£{amount = number of shares x dividend rate}
This voucher should be kept. It will be accepted by HM Revenue & Customs as evidence of a tax credit.
Named: RPJ Accountancy Free Tax Dividend Voucher Template
If your answer is "no," then you should take advantage of our free Dividend Voucher Template and make sure you fill it in and save it monthly.
While this might seem like an added administrative task, it's a straightforward process. Once you've set it up, it's merely a matter of changing the date and value and saving it securely so you have it readily available in case of any HMRC inquiries.
To make life easier, we offer a complimentary and user-friendly Dividend Voucher Template in Word format. To receive it, please follow these simple steps:
- Enter your name and email address below.
- Confirm your email address when prompted.
- You will receive an email containing a download link for the template in Word format.
- Once you have downloaded it, save the template and personalise it by inserting your company details in the highlighted sections.
- Update the dates and values monthly and store a copy for your records.
This straightforward dividend documentation template ensures you have the necessary paperwork to substantiate your tax-efficient dividend and salary structures. This process significantly reduces the likelihood of administrative issues with HMRC – at least on the documentation front.
Stay safe - don't let incomplete paperwork leave your business vulnerable.
Secure your dividends today with our free, easy-to-use Dividend Voucher Template. Download HERE! (Google Docs)
Once downloaded, edit the template with your company details and save as a Master Copy to a local folder. Then each time you declare a dividend save a opy of your master template with the date of the dividend and edit the date and value of the dividend to be recorded. Distribute final version to shareholders receiving dividends.
If you would like a Corporation Tax Planner (Excel) click here.
Download our Free Guide
4 Costly Mistakes Business Owners Make with Dividends
Imagine paying dividends for years, thinking you're doing everything right. But then, one day, you discover you've made a costly mistake that could ruin your business. A mistake that could have been avoided.
Don't let this happen to you. Learn the 4 common dividend errors that can destroy your business - and how to prevent them.
