Payment of Dividends

[HelenW]

We are a small limited company, 2 equal shareholders husband and wife. When finalising our accounts last year (Y/E 30.4.04) we proposed a final dividend, which we recorded in our accounts last year, by crediting "dividends payable". The dividend was paid monthly in variable ammounts over the following year. Is this legal and are there any tax implications?

[squowse]

final dividends are declarable in your income tax self-assessment in the tax year in which they were declared. whereas with interim dividends it's the tax year they are paid in that counts.