How can I pay dividends to myself?
How can I pay dividends to myself?
If the company has made a sufficient post-tax profit
May 13, 2019

As another tax year passes and we offer our advice on various accountancy solutions here at Hive, we often get asked the question – how can I pay dividends to myself?

If you operate a limited company, you will be wearing two important hats, that of a shareholder and also of a director. It’s important to understand the distinct difference in these roles, especially when it comes to declaring dividends. As a shareholder, you are simply an investor expecting a nice return (dividend payment) each year. One of the responsibilities for a director is to declare the interim dividends to be paid throughout the year.


A dividend is a payment a company makes to the shareholders if it has made a sufficient post-tax profit otherwise know has distributable profit; you mustn’t pay out more than the distributable profit held within the company.

To pay a dividend, you should:

  • Calculate your profits to date (profits after deducting 19% corporation tax) and confirm there are sufficient funds and profits to pay a dividend;
  • Hold a meeting to ‘declare’ the dividend to be paid;
  • Keep minutes of the meeting (even if you are the only director);
  • Write up a dividend voucher showing the date, company name, names of the shareholders being paid the dividend, and the amount of the dividend.

You must give a copy of the voucher to the shareholder(s) that have received a dividend and keep a copy of this and the meeting minutes in the company’s records.

You can ask other professionals to take on some of these tasks (for example, an accountant) but ultimately you’re still legally responsible. If you would like to know how Hive can help you more with your duties and responsibilities, please get in touch.

The information contained in this article is based on the opinion of Hive Business and does not constitute formal tax advice. Any tax outcomes will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future. You should seek specific advice before embarking on any course of action. Hive Business does not provide regulated Financial Advice, including advice on investment, insurance or lending products or their suitability for you. This article is provided for information only and does not constitute, and should not be interpreted as, investment advice or a recommendation to buy, sell or otherwise transact, or not transact, in any investment including Bitcoin and other crypto. Any use you wish to make of any information contained within this article is, therefore, entirely at your own risk.

By Team Hive
If you have any questions or comments about this article, please get in touch.
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