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What is a dividend?

Aug 07, 2014
What is a dividend

A dividend is a payment made to shareholders, taken out of the company’s profits.

All shareholders will usually be entitled to dividends. You will have to hold a meeting to “declare” the dividends and keep the minutes of that meeting. Paperwork needs to be filled in with the following:

  • Date
  • Company name
  • Names of shareholders being paid in dividend
  • Amount of the dividend tax credit

Always make sure you keep a receipt for your company’s record.

Author

Karen Horne
@UK_Co_Formation

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