Hi everyone
I've done a search and haven't found much regarding this topic:
http://www.capricaonline.co.uk/guide...dend-payments/
I spoke to a friend earlier who is contracting via a LTD company and he mentioned he pays his dividend weekly. I was a bit horrified by this as I've not heard of this being done before but he said his accountant told him there was no problem with it.
Do any of you pay your dividends weekly? What are the pros and cons of doing so? and before someone lays into me I have only worked via umbrella companies as I have to working in Switzerland
I've done a search and haven't found much regarding this topic:
http://www.capricaonline.co.uk/guide...dend-payments/
Frequency of dividend payments (dispelling a myth)
I have heard it said that HMRC take a dim view of you regularly paying yourself in dividends. They probably do but there is absolutely nothing wrong it. You can pay yourself a weekly or daily dividend if you want and it is perfectly legal and fine. As long as you follow the guidelines to avoid an illegal dividend (ie profits + voucher + board minutes) there is nothing HMRC can do about it. (Practical considerations mean once a month is probably going to be much more sensible!)
I have heard it said that HMRC take a dim view of you regularly paying yourself in dividends. They probably do but there is absolutely nothing wrong it. You can pay yourself a weekly or daily dividend if you want and it is perfectly legal and fine. As long as you follow the guidelines to avoid an illegal dividend (ie profits + voucher + board minutes) there is nothing HMRC can do about it. (Practical considerations mean once a month is probably going to be much more sensible!)
Do any of you pay your dividends weekly? What are the pros and cons of doing so? and before someone lays into me I have only worked via umbrella companies as I have to working in Switzerland
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