My company has substantial retained profit and to avoid the higher dividend tax from next financial year (post Apr 6th), I have declared a sizeable dividend. Problem is that most of my business savings are in notice accounts for which I gave notice late and I only have access to the cash in May. Before issuing the dividend, I checked with my accountant and he confirmed that for self assessment purposes, the income from dividend will be treated as income in the year when the dividend was declared, even if the cash was withdrawn from the company later.
So far so good, but the question I wanted to get an opinion on is whether it is fine to take such dividend in multiple installments from the company. I have some savings in business accounts which are instant access so can I take some of the declared dividend now and then the bulk of the remainder in May when the notice account cash is available? Is there some necessity of the entire dividend transaction appearing as a single payment?
I can wait for my accountant to opine on Monday but given that April 6th is approaching fast, would like to benefit from other forum members' views on this matter so that I can mull over the options and have a more informed discussion with my accountant on Monday.
So far so good, but the question I wanted to get an opinion on is whether it is fine to take such dividend in multiple installments from the company. I have some savings in business accounts which are instant access so can I take some of the declared dividend now and then the bulk of the remainder in May when the notice account cash is available? Is there some necessity of the entire dividend transaction appearing as a single payment?
I can wait for my accountant to opine on Monday but given that April 6th is approaching fast, would like to benefit from other forum members' views on this matter so that I can mull over the options and have a more informed discussion with my accountant on Monday.
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