Sporadic dividends
+ Reply to Thread
Page 2 of 5 FirstFirst 1 2 3 4 ... LastLast
Posts 11 to 20 of 45
  1. #11

    Super poster


    Join Date
    Mar 2015
    Posts
    2,152
    Thanks (Given)
    33
    Thanks (Received)
    100
    Likes (Given)
    707
    Likes (Received)
    747

    Default

    Quote Originally Posted by le3ky View Post
    I declare a small dividend every morning to cover the cost of my morning coffee and newspaper.
    And a slightly bigger one for the pork pie and pint of ale at lunch?

  2. #12

    Faqqed Off

    TheFaQQer's Avatar
    Join Date
    Oct 2006
    Posts
    36,115
    Thanks (Given)
    380
    Thanks (Received)
    1283
    Likes (Given)
    3689
    Likes (Received)
    3200

    Default

    Quote Originally Posted by northernladuk View Post
    There is no general rule.....
    There is, but nobody in dividend club will talk about it.
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership
    Monday 27th November 1230-1330: IPSE Update on the Autumn Budget for contractors. Register here.

  3. #13

    Contractor Among Contractors

    Hobosapien's Avatar
    Join Date
    Feb 2016
    Location
    LA - la la fantasy land
    Posts
    1,042
    Thanks (Given)
    25
    Thanks (Received)
    63
    Likes (Given)
    58
    Likes (Received)
    230

    Default

    My approach was always that after invoice is paid so have cash in company account and know that most of it will be profit at the end of the year, draw divi on account for any amount required as and when, then at year end one divi is officially declared on accounts with paperwork to back up.

    So the only place the divis taken in advance appear is on the company bank statement, which would only be seen by anyone other than accountant during any investigation. I only took them when I needed the extra cash above the normal salary, so not as regular as every month like a salary.

    Never had any problem with this approach as it is legit, as advised by my accountant.
    Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

  4. #14

    Super poster


    Join Date
    Sep 2008
    Posts
    2,671
    Thanks (Given)
    48
    Thanks (Received)
    109
    Likes (Given)
    34
    Likes (Received)
    272

    Default

    I take regular dividends as I need to eat, pay bills and clothe my kids...
    ______________________
    Don't get mad...get even...

  5. #15

    Fingers like lightning


    Join Date
    Feb 2016
    Posts
    531
    Thanks (Given)
    0
    Thanks (Received)
    35
    Likes (Given)
    4
    Likes (Received)
    152

    Default

    I do about the same amount each month. more if I need it.

  6. #16

    I live on CUK

    SueEllen's Avatar
    Join Date
    Nov 2005
    Location
    in the Park
    Posts
    27,716
    Thanks (Given)
    1382
    Thanks (Received)
    1115
    Likes (Given)
    4481
    Likes (Received)
    4140

    Default

    Mine are sporadic.
    "You’re just a bad memory who doesn’t know when to go away" JR

  7. #17

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,779
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6027

    Default

    Rather worryingly I asked my accountant when they issue my dividends and they went a little silent.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  8. #18

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    3,390
    Thanks (Given)
    38
    Thanks (Received)
    245
    Likes (Given)
    211
    Likes (Received)
    679

    Default

    I have never come across any evidence whatsoever that HMRC have successfully challenged regular or monthly dividends as "salary", so I think it's nonsense that is parroted by some accountants.

    The main argument for not paying dividends at such a high frequency is, as Maslin said, it means more paperwork.

    I pay our dividends quarterly (a nice round amount) and then pay a final dividend before the end of the tax year to take me up to the higher rate threshold. I budget our household finances using YNAB and tend to budget 3 months in advance at a time.

    If you've got a significant warchest, I think there's also a good argument to be made for taking a single dividend at the beginning of the year and sticking all of it in a savings account (or offset mortgage account if you have one) too.

  9. #19

    Still gathering requirements...


    Join Date
    May 2017
    Posts
    61
    Thanks (Given)
    0
    Thanks (Received)
    7
    Likes (Given)
    0
    Likes (Received)
    15

    Default

    Quote Originally Posted by TheCyclingProgrammer View Post
    I have never come across any evidence whatsoever that HMRC have successfully challenged regular or monthly dividends as "salary", so I think it's nonsense that is parroted by some accountants.

    The main argument for not paying dividends at such a high frequency is, as Maslin said, it means more paperwork.

    I pay our dividends quarterly (a nice round amount) and then pay a final dividend before the end of the tax year to take me up to the higher rate threshold. I budget our household finances using YNAB and tend to budget 3 months in advance at a time.

    If you've got a significant warchest, I think there's also a good argument to be made for taking a single dividend at the beginning of the year and sticking all of it in a savings account (or offset mortgage account if you have one) too.
    If you have warchest money sitting in the business in a low interest savings account, and haven't used your entire dividend entitlement, you should be taking the money out up to the higher rate threshold, subject to you being satisfied with the new dividend tax.

    Why would you have money sitting at 1% in a business savings account rather than 5 to 20% in your own profit-making vehicles? If you are able to pay one single dividend every late April then this makes financial sense. If you reasons for not are that you can't handle having such a large amount of money to manage over a year and invest then you really need to take a good look at your habits and resolve them.

  10. #20

    Godlike

    jamesbrown's Avatar
    Join Date
    Dec 2011
    Posts
    5,254
    Thanks (Given)
    69
    Thanks (Received)
    373
    Likes (Given)
    561
    Likes (Received)
    1642

    Default

    Quote Originally Posted by TheCyclingProgrammer View Post
    I have never come across any evidence whatsoever that HMRC have successfully challenged regular or monthly dividends as "salary", so I think it's nonsense that is parroted by some accountants.
    Combining salary and dividend payments into a single payment would be asking for trouble (even with the correct dividend paperwork) but, otherwise, I agree.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.