19/03/2025
How to take Dividends
One of the most common questions we get from company directors is how to correctly take dividends while staying compliant with tax and company law. With the end of the tax year approaching on 5 April 2025, now is the time to review your dividends if you plan to take them in this tax year.
π’ If you want your dividend to count for the current tax year, it must be declared before 5 April 2025.
Declaring a Dividend Before 5 April 2025
To ensure a dividend counts for the 2024/25 tax year, it must be:
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Declared before 5 April 2025
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Recorded in board minutes
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Supported by a properly issued dividend voucher
π It is your responsibility to review your companyβs financial position and declare any dividends. We do not automatically calculate, declare, or document dividends on your behalf.
To help you stay compliant, we have provided the below documents to our portal for your convenience:
π Dividend Board Minutes
π Dividend Voucher
π hot to complete dividend documents
To access them, login to the client portal (link in email signature) and then:
Click your company name
Click "Documents"
Scroll down to "Templates for client"
Click "Dividend paperwork"
If you have any issues with the above, please let us know.
Need Expert Input on Your Dividend Strategy?
For directors who want to ensure they are making the most tax-efficient decisions before year-end, we offer:
π Dividend Strategy & Tax Planning Review (Β£195 + VAT)
This session is designed to maximise tax efficiency while ensuring you stay compliant.
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Understand how much you can take in dividends based on your companyβs financial position.
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Plan the most tax-efficient mix of salary & dividends to minimise personal tax.
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Avoid costly tax mistakes that could trigger unexpected tax liabilities.
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Review upcoming tax changes that could affect next yearβs dividend strategy.
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Get clarity on best practices to ensure compliance with company law.
π Important: We do not declare dividends for you or confirm your companyβs financial position. However, we will walk you through the process to ensure you are making informed decisions.
π Compliance Disclaimer:
π’ This session provides tax guidance only. We do not assess distributable reserves, confirm legality, or approve dividends. You remain responsible for ensuring dividends comply with company law and that sufficient reserves are available before declaration.