I am just creating the dividend vouchers for the directors of a client of mine and have a couple of queries. Firstly, can someone please confirm that the dividend per share is net and not gross e.g. a dividend of £750 paid to a director with 50 shares would equate to £15 a share. The directors total dividend however grossed up after taking the tax credit into account would be £833.33. Am I correct in that the dividend per share is £15 and not £16.67?
Secondly, if the director only takes £250 now and keeps the remaining £500 in the business, am I right in thinking that the tax voucher would still show the total dividend declared of £750?
Dividends paid in company are shown net of 10% notional tax in accounts so in your case dividend would be £15. The tax voucher would of course shown the gross, net and notional tax credit.
The div voucher shows whatever the dividend that is declared. Whether the shareholder takes some or all of the dividend declared is up to them and a separate matter. The company would however still own them any dividend paid out.
