Glossary · UK
What is Dividend Voucher?
A formal document that a company must produce when paying a dividend. It records the payment date, amount paid per share, shareholder name and total dividend amount. HMRC requires dividend vouchers as evidence of dividend payments.
Full Definition
A dividend voucher (also called a dividend certificate) is the formal paperwork that a limited company must produce each time it pays a dividend to its shareholders. HMRC requires dividend vouchers to be retained as evidence that dividends were properly paid from available distributable profits. The voucher must include: the company name and registered number; the name and address of the shareholder receiving the dividend; the payment date; the share class on which the dividend is paid (e.g. ordinary shares); the amount of the dividend per share; and the total dividend amount paid to that shareholder. Before issuing a dividend, the company's directors must pass a board minute (a formal record of the decision to pay the dividend) confirming that sufficient retained profits exist to cover the payment. Dividends paid without sufficient distributable profits are unlawful — they are treated as illegal dividends, must be repaid to the company, and can give rise to personal liability for directors. For small owner-managed companies, the dividend-versus-salary decision is a key tax planning consideration: dividends are not subject to National Insurance and the first £500 of dividends per year (2026/27 dividend allowance) is tax-free, making them tax-efficient for director-shareholders. However, dividends do not create pensionable earnings and do not count as Net Relevant Earnings for pension relief purposes. Record-keeping of board minutes and dividend vouchers for at least six years is essential for HMRC compliance.