+ Reply to Thread
Page 1 of 5 1 2 3 ... LastLast
Posts 1 to 10 of 50

Thread: Weekly Dividend

  1. #1

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    25
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default Weekly Dividend

    Hi everyone

    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 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
    Last edited by The Spartan; 30th January 2013 at 07:58. Reason: more info
    Representing brand SPARTAN!!

  2. #2

    Super poster


    Join Date
    Jan 2009
    Posts
    2,993
    Thanks (Given)
    138
    Thanks (Received)
    63
    Likes (Given)
    738
    Likes (Received)
    354

    Default

    Quote Originally Posted by The Spartan View Post
    Hi everyone

    I've done a search and haven't found much regarding this topic:

    The best way to time your dividend payments | Reading Accountants | Caprica Online Accountants



    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
    Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.

    I have been payed weekly in the past put I always try and minimise the number of times a year that I take money out.

  3. #3

    Contractor Among Contractors

    b0redom's Avatar
    Join Date
    Jun 2007
    Posts
    1,112
    Thanks (Given)
    0
    Thanks (Received)
    18
    Likes (Given)
    6
    Likes (Received)
    74

    Default

    Quote Originally Posted by bobspud View Post
    Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.
    ^-- This is what I do. It goes as a director's loan until it's time to declare it.

  4. #4

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    25
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default

    Quote Originally Posted by bobspud View Post
    I always try and minimise the number of times a year that I take money out.
    This is what all the contractors I know do at present which is why I was surprised when he turned around and said I do it weekly, granted it is his first gig but it just didn't seem right when he mentioned it
    Representing brand SPARTAN!!

  5. #5

    Lord of the Vectras

    VectraMan's Avatar
    Join Date
    Dec 2005
    Location
    European Union (UK region)
    Posts
    11,172
    Thanks (Given)
    57
    Thanks (Received)
    193
    Likes (Given)
    292
    Likes (Received)
    1108

    Default

    Quote Originally Posted by bobspud View Post
    Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.

    I have been payed weekly in the past put I always try and minimise the number of times a year that I take money out.
    I've always just paid the dividend as and when I wanted to. It's not exactly difficult to fill out the paperwork each time.

    If you need a dividend payment each week, then you're clearly living very hand to mouth, and that can't be good.
    Will work inside IR35. Or for food.

  6. #6

    TykeLike

    SimonMac's Avatar
    Join Date
    Aug 2010
    Location
    God's Own Republic Of Yorkshire
    Posts
    21,800
    Thanks (Given)
    220
    Thanks (Received)
    994
    Likes (Given)
    785
    Likes (Received)
    2770

    Default

    I a trying to move to a quarterly dividend from an as and when needed
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  7. #7

    Super poster

    Scrag Meister's Avatar
    Join Date
    Mar 2010
    Location
    London and Devon
    Posts
    4,051
    Thanks (Given)
    8
    Thanks (Received)
    37
    Likes (Given)
    192
    Likes (Received)
    153

    Default

    I tend to keep it quarterly or longer.

    Depends when I need it.

    Whopper in April usually goes relatively quickly as the wife has a shopping list all ready to go.

    Currently new boundary wall, paving and garden re-design.
    Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

  8. #8

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    25
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default

    Quote Originally Posted by VectraMan View Post
    I've always just paid the dividend as and when I wanted to. It's not exactly difficult to fill out the paperwork each time.

    If you need a dividend payment each week, then you're clearly living very hand to mouth, and that can't be good.
    I said to him is there any need to have it weekly as I know he'll p*ss it all away buying gadgets, he jumped from being a permie so I doubt he had any capital behind him. But I have tried to stress that no gig lasts forever and he will need money to die him over in between contracts.
    Representing brand SPARTAN!!

  9. #9

    Contractor Among Contractors

    Sausage Surprise's Avatar
    Join Date
    Jun 2007
    Location
    Trap 2
    Posts
    1,643
    Thanks (Given)
    4
    Thanks (Received)
    8
    Likes (Given)
    100
    Likes (Received)
    72

    Default

    Quote Originally Posted by The Spartan View Post
    I said to him is there any need to have it weekly as I know he'll p*ss it all away buying gadgets, he jumped from being a permie so I doubt he had any capital behind him. But I have tried to stress that no gig lasts forever and he will need money to die him over in between contracts.
    You might to check if funeral expenses are tax deductible
    Blood in your poo

  10. #10

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    31,514
    Thanks (Given)
    124
    Thanks (Received)
    1062
    Likes (Given)
    1559
    Likes (Received)
    5238

    Default

    I dividend to myself once a year for the full amount and then stick it somewhere where it is earning something and draw down on that as I need it. No point leaving it in the business earning squat just because you want a regular income IMO.

    You are correct in stating you can take a dividend anytime. Just because you take one monthly does not indicate you are a permie. Being paid monthly and declaring a dividend are completely different beasts. The only common factor is the monthly cycle. If you are assuming doing something monthly makes you an IR35 target I need to tell the missus to get some insurance out quick!!!
    'CUK forum personality of 2011' - Winner - Yes really!!!!

Tags for this Thread

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.