---
title: How to declare an interim dividend
description: How to declare an interim dividend
---
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2. [Paying Yourself and Employees](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb)
3. [Dividends: Legal Process](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#dividends-legal-process)
# How to declare an interim dividend
## The process to declare and the difference between interim and final dividends
An interim dividend is declared and paid during the accounting year, before the final accounts are prepared. It requires directors' minutes and a dividend voucher.
### The process
Tell us the amount you want to pay and the payment date. We check your Xero balance sheet to confirm sufficient retained earnings, prepare a board minute recording your decision, and issue a dividend voucher. Once you confirm the documents are signed and dated, we post the dividend journal in Xero and you make the bank transfer.
### Interim vs final dividends
An interim dividend is based on management accounts showing estimated profits for the year. A final dividend is declared after the year-end accounts are complete, and the exact post-tax profit is confirmed. Both follow the same process and require the same documentation.
đź’ˇ **Good to know:** Keep interim dividends conservative if you are early in your accounting year. A large interim dividend declared when only three months of profit data is available risks being unlawful if the full year turns out to be less profitable than expected.
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