A dividend voucher is the record a UK limited company writes up for every dividend it pays. GOV.UK says it must show the date, the company name, the names of the shareholders being paid and the amount of the dividend. You give a copy to each person receiving the dividend and keep a copy in the company's records.
If you run your own company and pay yourself in dividends, the voucher is the easy bit. The rules behind it are where directors get caught out. Here's what the voucher needs, then the steps that make the dividend valid in the first place.
What a dividend voucher must show
| Item | Example |
|---|---|
| Date | The date the dividend is paid |
| Company name | Your company's registered name |
| Names of the shareholders being paid | Each person receiving the dividend |
| Amount of the dividend | The amount paid to each shareholder |
That's the list GOV.UK gives, and it's short. You can add more detail, such as the share class or the number of shares each person holds, if it helps you match the voucher to your register of members, but the four items above are the ones GOV.UK says the voucher must show.
The paperwork every dividend needs
- Check there are enough profits. GOV.UK says the company must not pay more in dividends than its available profits from current and previous financial years.
- Hold a directors' meeting to declare the dividend.
- Keep minutes of the meeting, even if you're the only director.
- Write up a voucher for each dividend payment.
- Give a copy to each recipient and keep a copy for the company's records.
- Pay the dividend to all shareholders, in line with their rights.
GOV.UK says you must usually pay dividends to all shareholders. Under the model articles, a dividend is paid by reference to each shareholder's holding on the date of the resolution or decision, unless the resolution or the share terms say otherwise.
Interim and final dividends under the model articles
Most small companies use the model articles, and article 30 sets out two routes. The directors can decide to pay interim dividends. A final dividend is declared by the shareholders by ordinary resolution, but only after the directors have recommended an amount, and it can't be more than the directors recommended. If you've written your own articles of association, check them first.
The model articles add a few rules people rarely read. Dividends can be paid by bank transfer, cheque or another agreed method. The company can't pay interest on a dividend unless the share terms or another agreement allow it. And a dividend that's unclaimed for 12 years after it became due stops being owed.
What people miss: the voucher can't fix an illegal dividend
A voucher records a dividend. It doesn't make it lawful. Section 830 of the Companies Act 2006 says a company may only make a distribution out of profits available for the purpose, which means accumulated, realised profits less accumulated, realised losses.
If a dividend breaks those rules, section 847 says a shareholder who knew, or had reasonable grounds to believe, it was made unlawfully is liable to repay it. In a one-person company, the director who declared it and the shareholder who received it are the same person, so that test is hard to escape. Check the numbers before you declare, not after.
A simple voucher layout
There's no official form, so most directors keep a one-page template. A clear layout runs in this order: the company's registered name at the top, the date of payment, the shareholder's name, the amount paid to that shareholder, and a line confirming the dividend was declared at the directors' meeting on a stated date. Keep the voucher with the minutes of that meeting, so anyone checking can see the decision and the payment side by side.
Tax on the dividend
The company doesn't pay tax on dividend payments, and GOV.UK says you can't count dividends as a business cost for Corporation Tax. Shareholders may pay Income Tax. For 2026 to 2027 the dividend allowance is £500, and dividends above it are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, as of October 2026. If you get more than £10,000 in dividends, you need to fill in a Self Assessment return. My guide to the dividend allowance has the full detail.
If you take more out of the company than you've put in, and it isn't salary or a dividend, it's a directors' loan, which has its own rules. See my guide to the directors' loan account.
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My verdict
Write the voucher every time, but put your effort into the step before it: confirm the profits are there and minute the decision. A tidy voucher on an illegal dividend is still an illegal dividend, and in a small company it's you who'd have to pay it back.
Frequently asked questions
What is a dividend voucher?
It's the record a limited company writes for each dividend payment. GOV.UK says it shows the date, the company name, the names of the shareholders being paid and the amount.
Who gets a copy of the dividend voucher?
Each recipient of the dividend gets a copy, and the company keeps a copy for its own records.
Do I need board minutes for a dividend if I'm the only director?
Yes. GOV.UK says you must hold a directors' meeting to declare the dividend and keep minutes, even if you're the only director.
Can a company pay a dividend without profits?
No. A company may only make a distribution out of profits available for the purpose, and must not pay more than its available profits from current and previous years.
What happens if a dividend is paid illegally?
Under section 847, a shareholder who knew, or had reasonable grounds to believe, the dividend was unlawful is liable to repay it to the company.
How much tax do I pay on dividends?
For 2026 to 2027 the dividend allowance is £500, then rates are 10.75%, 35.75% and 39.35% depending on your tax band, as of October 2026.
What's the difference between an interim and a final dividend?
Under the model articles, directors can decide to pay interim dividends. A final dividend is declared by ordinary resolution of the shareholders and can't exceed the amount the directors recommended.
