The dividends note tells shareholders and other readers what the company paid out to its shareholders in the year. In Tax Optimiser it is a short text note, usually completed from a template.
What this note shows
The note states the dividends paid or proposed in the year, typically the total amount, the amount per share and whether a final dividend is proposed. FRS 102 Section 1A encourages small companies to disclose dividends declared and paid or payable during the year. The note only exists in FRS 102 Section 1A accounts.
Dividends can only be paid out of distributable profits (Companies Act 2006 s830), so it is worth checking reserves before paying one.
Where the figures come from
This is a text note. It doesn't read the dividend paid account in the trial balance, so you type the amounts. Check them against the dividends shown in the accounts. In the demo the company paid an interim dividend of £40,000 on 100 ordinary £1 shares, which is £400 per share.
The note has no default wording, so it stays off until you switch it on and add your own wording or a template.
Completing the note in Tax Optimiser
Open the period, choose View Accounts, then Notes in the Actions menu on the left. Select Dividends, set Show this note in the accounts to Yes, then type your wording or click Use Template.
Click Save changes to save the note and rebuild the accounts preview.
Wording templates
- Interim dividend paid – "During the year the company paid an interim dividend of £{{DividendAmount}} (£{{DividendPerShare}} per ordinary share). No final dividend is proposed." You'll be asked for
{{DividendAmount}}and{{DividendPerShare}}. - No dividends – "The directors did not pay or propose any dividends during the year." No placeholders.
Applying a template replaces the text in the box. If the company paid more than one dividend or has more than one share class, edit the wording to cover each.
How it appears in the accounts
In the demo accounts the note is note 10:
The £20,000 dividend the demo company declared after the year end isn't in this note. It is disclosed in the events after the reporting date note, using the "Dividend declared after year end" template, because it isn't a liability at the balance sheet date.
Frequently asked questions
Do small companies have to disclose dividends in their accounts?
FRS 102 Section 1A encourages small companies to disclose dividends declared and paid or payable, and most do. Use the No dividends template if none were paid.
Does the dividends note pick up the dividend from my trial balance?
No. It is a text note, so type the amount and check it agrees with the dividends shown in the accounts.
Where do I show a dividend declared after the year end?
In the events after the reporting date note. A dividend declared after the year end isn't a liability at the balance sheet date, so it isn't included in this year's figures.
How do I work out the dividend per share?
Divide the total dividend by the number of shares in issue in that class. For example, £40,000 on 100 shares is £400 per share.
Where to go next
- Guide to the notes to the accounts – how the Notes screen works
- Previous: Investment property note
- Next: Debtors note
- Events after the reporting date note
- Share capital note