Kemp & Company Limited

To make a dividend you need to pay the shareholder net, and withhold the 20% tax to pay over to The Revenue Service.

The dividend needs to have been authorised by the directors at a meeting and they need to ensure that the company first passes the solvency test (company law): 

Definition of solvency test:

1. the company is able to pay its debts as they become due, 
2. the value of the company's assets is greater than the value of its liabilities

You need to issue each shareholder with a dividend certificate which should show the date the dividend was declared, the gross amount, tax rate, tax amount and net amount paid. This can just take the form of a letter on your headed paper to the shareholder and head it something like ‘dividend certificate’ – there is no standard format.

You can just do one cheque to The Revenue Service if there are multiple shareholders.

A distribution report needs to be submitted. We can do this for you as we already have authority OR I attach an authority form.