Timing of dividend payment for personal tax ret

by **rickety** on Fri Mar 20, 2009 2:51 pm

Hi there, sorry this may be a very simplistic question!!

For my personal tax return do I include dividend payments that were actually paid to me (money in my account) for a specifc personal tax return year OR dividend payments due (based on the date in the dividend certificate).

I am in the first couple of years of having my own ltd company so am trying to weigh up best timing of payments from my company with my personal tax status.

Many thanks for the help
Richard.

by **pawncob** on Fri Mar 20, 2009 6:09 pm

The date on the div voucher is the date for payment, although it may take several days to reach your account.

by TN on Tue Mar 24, 2009 10:38 am

If this is your own company, bear in mind that you can declare a dividend and transfer it to your loan account with the company - you don't need to pay the cash out to yourself. The dividend will be taxable on you at the date it is credited to your loan account. This could be useful if you have reserves to pay a dividend, but not the cash, and you want to maximise your tax efficiency.

Your accountant should be able to advise you on the timing, and on the paperwork requried to declare a dividend and credit it to your loan account.