Dividend voucher
A dividend voucher is the written record of a dividend payment, showing the company, the shareholder, the date, the amount and the shares held. Together with a board minute it evidences that the dividend was properly declared.
How it works
Paperwork is what separates a dividend from a withdrawal. For each dividend the directors should hold a meeting, record the decision in a minute confirming that distributable reserves are sufficient, and issue a voucher to each shareholder. One copy goes to the shareholder for their tax return, one stays in the company records.
The voucher needs the company name and number, the shareholder name, the date of payment, the class and number of shares held, and the amount paid. There is no prescribed form, but the date matters: a dividend is taxed in the tax year it is paid or credited to the shareholder's account, which can decide whether income falls above or below £50,270.
Where no records exist, HMRC can argue the money was never a dividend at all. The default treatment is then a director's loan, with a 35.75% section 455 charge if it is outstanding nine months and one day after the year end, or earnings subject to PAYE and National Insurance.
For a single-director company this takes minutes. Creating the minute and voucher at the time is far easier than reconstructing a year of transfers months later, and it is one of the first things asked for in an enquiry.
Who this affects
- Every shareholder-director taking dividends instead of salary
- Companies with more than one shareholder or share class
- Directors drawing money regularly without documenting each payment
- Anyone reporting dividends on a self assessment return
Common mistakes
- Transferring money with no minute or voucher and calling it a dividend later
- Dating vouchers to suit the tax outcome rather than the payment
- Paying unequal amounts to shareholders of the same share class
- Declaring a dividend when reserves do not support it
Frequently asked questions
Do I legally need a dividend voucher?
Companies must keep proper records of distributions and shareholders need the details for their tax returns. A voucher plus a board minute is the accepted way to do it.
What should the voucher show?
Company name and number, shareholder name, payment date, share class and number held, and the amount of the dividend.
Which tax year does a dividend fall in?
The year in which it is paid or credited to the shareholder, which is why the date on the voucher matters.
Can shareholders in the same class receive different amounts?
Not normally. Dividends must be paid in proportion to shareholdings within a class, unless different share classes or waivers are properly in place.
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Reviewed by Waqas Sagar ACA FCCA FMAAT · Last reviewed 13 September 2026 · Figures for 2026/27 · About our practice
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