Dividends
As a not-for-profit organisation, we share a percentage of our profits with our members. This is known as a dividend. Credit unions keep their money within a community of credit union members because we do not need to pay profits to external shareholders.
The remaining profits are re-invested in the business to provide a better service to our members.
The dividend is paid against the savings balances held on each members account between 1st October and 30th September – our financial year.
Dividend rates may vary and past rates should not be considered as a guide to future rates and the proposed rate is voted during the AGM which all members are able to attend.
Dividend Thresholds, HMRC and Tax Responsibility
Members are reminded that the dividend is paid gross & any tax responsibility lies with you, the member.
Please visit the following link https://www.gov.uk/tax-on-dividends for information on tax return self assessment.
NOTE : The credit union is required to report all dividends paid above a threshold, currently set at £250, in an annual report to HMRC.
