Sporadic dividends
+ Reply to Thread
Page 1 of 5 1 2 3 ... LastLast
Posts 1 to 10 of 45
  1. #1

    Still gathering requirements...


    Join Date
    May 2017
    Posts
    87
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    1
    Likes (Received)
    19

    Default Sporadic dividends

    I know there is no general rule when it comes to dividends, some people pay every month, some pay every year, but is there something to be said to having regular dividends?

    In the past I have tried to keep it to every quarter, because if you can't forecast your general finances for the next three months you really shouldn't be running a business, but in life things are never that simple so occasionally I will take a sporadic extra (call it a "special") dividend, or move the dates a few weeks of the next planned one.

  2. #2

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,780
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6028

    Default

    There is no general rule.....
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #3

    Still gathering requirements...


    Join Date
    May 2017
    Posts
    87
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    1
    Likes (Received)
    19

    Default

    Quote Originally Posted by InsertWittyNameHere555 View Post
    I know there is no general rule

    <snip>
    Quote Originally Posted by northernladuk View Post
    There is no general rule.....
    Thank you for that insight

  4. #4

    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 InsertWittyNameHere555 View Post
    is there something to be said to having regular dividends?
    The interval between successive payments is roughly equal.

  5. #5

    Should post faster

    Louisa@AardvarkAccounting's Avatar
    Join Date
    Jan 2017
    Location
    Dorset/Hampshire
    Posts
    117
    Thanks (Given)
    1
    Thanks (Received)
    13
    Likes (Given)
    18
    Likes (Received)
    30

    Default

    Quote Originally Posted by InsertWittyNameHere555 View Post
    I know there is no general rule when it comes to dividends, some people pay every month, some pay every year, but is there something to be said to having regular dividends?

    In the past I have tried to keep it to every quarter, because if you can't forecast your general finances for the next three months you really shouldn't be running a business, but in life things are never that simple so occasionally I will take a sporadic extra (call it a "special") dividend, or move the dates a few weeks of the next planned one.
    As NLUK and you both say - there is no general rule.

    Previously, it was always a thought that regular dividends could be seen as effectively you having a salary and therefore it could potentially be subject to NIC. However we are talking years ago...

    As the rules have now changed in regards to dividends and they are now taxed in the BRB, I can't see this ever coming into play.


  6. #6

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    33,780
    Thanks (Given)
    141
    Thanks (Received)
    1466
    Likes (Given)
    1780
    Likes (Received)
    6028

    Default

    If you can't work out when the best time to pay dividends based on the facts of your business you shouldn't be running one either surely.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  7. #7

    Contractor Among Contractors


    Join Date
    Sep 2009
    Location
    Tunbridge Wells
    Posts
    1,099
    Thanks (Given)
    27
    Thanks (Received)
    92
    Likes (Given)
    99
    Likes (Received)
    247

    Default

    There are no rules.

    There are some theories...whether there's any truth to them or not is another matter. Eg as Louise said, I've heard a few accountants warn against making a consistent monthly dividend as it could be argued that it's salary. I've seen no evidence of this.

    There's also the argument around dividend paperwork. Ie if you do one 40k dividend a year, that's one bit of paperwork. If you do 40 x 1k dividends a year, that's 40 bits of paperwork. Yes many micro company owners won't bother with the paperwork and won't suffer any negative impact of it.

    So in practice, you can most likely do whatever you like in terms of frequency/consistency and be fine.

  8. #8

    Old Greg is my bitch's bitch

    northernladyuk's Avatar
    Join Date
    Nov 2011
    Location
    Working the streets of your imagination
    Posts
    7,936
    Thanks (Given)
    1088
    Thanks (Received)
    571
    Likes (Given)
    396
    Likes (Received)
    2218

    Default

    Quote Originally Posted by Maslins View Post
    There are no rules.
    This isn't, 'Nam.
    Where there's muck there's brass.

  9. #9

    Contractor Among Contractors


    Join Date
    Apr 2015
    Posts
    1,398
    Thanks (Given)
    55
    Thanks (Received)
    114
    Likes (Given)
    798
    Likes (Received)
    648

    Default

    I suggest you pay dividends whenever the missus is going shopping.

  10. #10

    Should post faster

    l35kee's Avatar
    Join Date
    Sep 2016
    Posts
    187
    Thanks (Given)
    0
    Thanks (Received)
    12
    Likes (Given)
    3
    Likes (Received)
    39

    Default

    I declare a small dividend every morning to cover the cost of my morning coffee and newspaper.

+ Reply to Thread
Page 1 of 5 1 2 3 ... LastLast

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.