Do I need a board minute to pay myself a dividend?

Yes. GOV.UK says to hold a directors' meeting to declare the dividend and keep minutes of it, even if you are the only director. The minute is your evidence that the payment is a dividend and not a loan or salary.

What must a dividend voucher show?

The date, the company name, the names of the shareholders being paid and the amount of the dividend. Most vouchers also show the company number, the number and class of shares and the dividend per share, signed by a director.

How often can I pay a dividend?

As often as you like, provided each one is covered by retained profits at the time and properly minuted. Many directors pay monthly or quarterly interim dividends.

Can I pay a dividend if the company made a loss this year?

Only if retained profits from earlier years, less this year's loss, still cover the dividend. The test is accumulated realised profits less losses, not the current year's result.

How much tax will I pay on a dividend in 2026/27?

Nothing on the first £500. Above that, 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% above £125,140. With a £12,570 salary and a £36,450 dividend the tax is £3,864.63.

Guide

How to Declare a Dividend from Your Limited Company (2026/27)

Written by James Whitfield · Last checked 18 October 2026 · Checked against 2026/27 HMRC rates

Paying yourself a dividend is a legal process, not a bank transfer. Get the order right (profits first, then a board decision, then a voucher, then the payment) and the dividend is lawful and taxed at dividend rates. Skip a step and HMRC can treat the money as a loan or as salary.

Quick answer

To declare a dividend, check the company has enough retained profit after corporation tax, hold a directors' meeting and minute the decision (even if you are the only director), issue a dividend voucher to each shareholder, then pay the money¹². For 2026/27 the shareholder pays 10.75%, 35.75% or 39.35% on dividends above the £500 allowance³. A director on a £12,570 salary who takes a £36,450 dividend pays £3,864.63.

Key facts

Dividends can only be paid out of profits available for distribution: accumulated realised profits less losses⁴.
GOV.UK says to hold a directors' meeting to declare the dividend and keep minutes, even if you are the only director¹.
Every payment needs a dividend voucher showing the date, company name, shareholder names and amount¹.
Dividends go to all shareholders of the same class in proportion to their shares.
Dividend tax 2026/27: £500 allowance, then 10.75% / 35.75% / 39.35%³.

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How much can the company pay out?

Company law limits dividends to "profits available for the purpose": the company's accumulated realised profits, less accumulated realised losses, after corporation tax⁴. That is the retained earnings figure on the balance sheet, not the cash in the bank and not this year's profit alone. A company that made a loss this year can still pay a dividend if earlier retained profits cover it.

Directors must justify the dividend by reference to accounts. For an interim dividend part-way through the year that means up-to-date management accounts that show the profit to date and set aside the corporation tax due on it. Print or save them with the minute.

Interim or final dividend: who decides?

Under the standard model articles for private companies, the directors can decide to pay an interim dividend at any time, and a final dividend is declared by the shareholders by ordinary resolution, usually after the year-end accounts, and cannot exceed what the directors recommend. Most one-person companies pay interim dividends during the year. Check your own articles in case they differ.

How to declare a dividend, step by step

Check the numbers. Prepare management accounts, deduct corporation tax on the profit so far (19% up to £50,000 of profit, 25% above £250,000, marginal relief between) and confirm retained profits cover the dividend.
Hold a board meeting. Record the date, the directors present, the accounts considered, the amount per share and the payment date. A sole director still writes a minute.
Write a dividend voucher for each shareholder: company name and number, shareholder name and address, date, number and class of shares, dividend per share and total amount, signed by a director.
Pay the dividend from the company bank account to each shareholder, or credit it to their director's loan account.
Record it in the company's books and keep the minute and vouchers with the accounts.
Report it personally on the Self Assessment return for the tax year it is paid (interim) or becomes due (final).

Worked example: a one-person company in 2026/27

Priya's company makes £45,000 profit after her £12,570 salary. Corporation tax at the 19% small profits rate is £8,550, leaving £36,450 of retained profit. She declares a dividend of the full £36,450. The salary uses her personal allowance, so the dividend sits in the basic-rate band:

Company profit after salary	£45,000.00
Corporation tax at 19%	£8,550.00
Available for dividends	£36,450.00
Dividend allowance (0%)	£500.00
£35,950 at 10.75%	£3,864.63
Priya's dividend tax (pay by 31 Jan 2028)	£3,864.63

England, Wales and Northern Ireland; Scottish income tax bands do not change dividend rates. Priya's take-home from salary and dividend is £45,155.37 for the year. Use the director dividend calculator for your own figures.

What goes wrong most often?

Taking regular "drawings" and calling them dividends at the year end, without minutes or vouchers. Until a dividend is declared, the money is a director's loan.
Paying more than the retained profits once corporation tax is set aside. The excess is an unlawful dividend and repayable.
Paying one shareholder and not another of the same share class.
Backdating minutes to move a dividend into a different tax year. The tax point is when an interim dividend is actually paid.