More Sage pain
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I presume you mean - "where should I post the dividend cheque payment in Sage"?
If that IS what you mean, using the "Bank Payments" module, allocate the payment to a Nominal Ledger heading called "Dividends" and give it a code similar to where your Sage system has its "Drawings" code.
Please note, as a limited company, you should never post anything directly to "Drawings" - it is not a normal heading in company accounts.
Also, I presume you have ascertained that your company CAN pay you a dividend (there are a number of criteria the company has to meet before a dividend payment can be legally made).
If that IS what you mean, using the "Bank Payments" module, allocate the payment to a Nominal Ledger heading called "Dividends" and give it a code similar to where your Sage system has its "Drawings" code.
Please note, as a limited company, you should never post anything directly to "Drawings" - it is not a normal heading in company accounts.
Also, I presume you have ascertained that your company CAN pay you a dividend (there are a number of criteria the company has to meet before a dividend payment can be legally made).
The main one is that the company has sufficient reserves to support a dividend payment i.e. that the company is solvent.
In addition it is important that there is documentary evidence (i.e a minute) that the directors of the company have agreed the dividend.
It shouldalso be ensured that the correct dividend vouchers showing the required information are distributed to the recipients of the dividend.
In addition it is important that there is documentary evidence (i.e a minute) that the directors of the company have agreed the dividend.
It shouldalso be ensured that the correct dividend vouchers showing the required information are distributed to the recipients of the dividend.
Check on all the above 
You know what I'm gonna ask next though.....
What's a dividend voucher?
Edited to add:
Is this the right way to do it?
http://www.sage.ie/kbase/viewarticle.asp?pubnum='W...
You know what I'm gonna ask next though.....
What's a dividend voucher?
Edited to add:
Is this the right way to do it?
http://www.sage.ie/kbase/viewarticle.asp?pubnum='W...
Edited by The Griffalo on Tuesday 4th September 16:39
No. That is Sage's suggested method of posting dividend entries.
The voucher is essentially a piece of paper outlining the details of the dividend being paid. Thay are actually required by law and should always be printed out. If you have ever received a dividend from a British PLC you will have seen an example.
The vouchers needs to contain:
The name and address of the company
Its company number
The Net Value of the dividend
The associated Tax Credit
The date of the dividend
The dividend expressed on a "Dividend per share" basis
The name and address of the recipient
The voucher is essentially a piece of paper outlining the details of the dividend being paid. Thay are actually required by law and should always be printed out. If you have ever received a dividend from a British PLC you will have seen an example.
The vouchers needs to contain:
The name and address of the company
Its company number
The Net Value of the dividend
The associated Tax Credit
The date of the dividend
The dividend expressed on a "Dividend per share" basis
The name and address of the recipient
From a Sage point of view you don't have to. All you need to do is post the actual amount that the copmpany is going to pay to you and the other shareholders.
On the dividend voucher, the tax credit MUST be shown.
The tax credit represents 10% of the GROSS tax inclusive value of the dividend.
Therefore, the dividend actually paid represents 90% of the full value of the dividend.
To work out the tax credit, multiply the net amount paid by 10/9. This gives you the Gross Dividend. The difference between the Gross Dividend and the Net Dividend is the Tax Credit value.
Example:
Net Dividend - £10,000
Gross Dividend - £10,000 x 10/9 = £11,111.11
Tax Credit - £1,111.11 (i.e. £11,111.11 minus £10,000.00)
When entering the dividend on your personal Self Assessment Tax Return, you must enter ALL THREE VALUES in the relevant boxes.
On the dividend voucher, the tax credit MUST be shown.
The tax credit represents 10% of the GROSS tax inclusive value of the dividend.
Therefore, the dividend actually paid represents 90% of the full value of the dividend.
To work out the tax credit, multiply the net amount paid by 10/9. This gives you the Gross Dividend. The difference between the Gross Dividend and the Net Dividend is the Tax Credit value.
Example:
Net Dividend - £10,000
Gross Dividend - £10,000 x 10/9 = £11,111.11
Tax Credit - £1,111.11 (i.e. £11,111.11 minus £10,000.00)
When entering the dividend on your personal Self Assessment Tax Return, you must enter ALL THREE VALUES in the relevant boxes.
Edited by Eric Mc on Tuesday 11th September 10:33
If you set your "Cash Account" up as another "Bank Account", you should be able to clear the invoice in the same way you would by putting through a normal bank entry.
Alternatively, you could clear the outstanding amount by entering a Dummy Crtedit Note and making sure that
a) the dummy Credit Note is given a T9 VAT Code and
b) the Dummy Credit Note is given the Cash Account Nominal Code.
Alternatively, you could clear the outstanding amount by entering a Dummy Crtedit Note and making sure that
a) the dummy Credit Note is given a T9 VAT Code and
b) the Dummy Credit Note is given the Cash Account Nominal Code.
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