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Share capital, dividends & equity effects
For the Share Capital field, if a company has 100 shares with a nominal value of £1 each, should £100 be entered in that field?
Also, I understand from the support documentation that dividends paid during the year are not entered under a separate category. If the company pays a £100 dividend, does that need to be reflected anywhere else when completing the figures, or would it simply be reflected through a lower bank balance and therefore lower Total Current Assets?
Thanks
Also, I understand from the support documentation that dividends paid during the year are not entered under a separate category. If the company pays a £100 dividend, does that need to be reflected anywhere else when completing the figures, or would it simply be reflected through a lower bank balance and therefore lower Total Current Assets?
Thanks
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**Share capital:** Yes, £100 is correct for 100 shares at £1 nominal value each. Enter £100 in the "Share capital" field in the Capital and Reserves section of the balance sheet form (towards the bottom).
There is also a separate field near the top of the balance sheet called "Called up share capital not paid" — that one is only for shares that have been subscribed by shareholders but not yet paid for. If your shares were fully paid when they were issued (the typical situation), leave that top field at £0 and put the £100 in the Capital and Reserves "Share capital" line instead.
**Dividends paid:** There is no separate "dividends paid" field in TinyTax, and you are right that it is not entered under a separate category. Dividends paid to shareholders are not an expense — they are a distribution of profit after tax, so they do not appear on the Profit & Loss account and do not reduce your taxable profit.
When you enter your year-end balance sheet figures, the dividend payment is already reflected naturally: your cash (or bank) balance will be lower by the amount paid out. TinyTax calculates retained earnings automatically as Net Assets minus Share Capital, so the reduced cash flows through to lower retained earnings without any separate dividend entry needed.
Just enter your actual closing balance sheet figures as at your year end and everything balances correctly.