hypothetical example:
MyCo has £1100 of distributable profits
on 1st Jan I pay a £1000 dividend
on 2nd Jan MyCo pays a £500 bill via a direct debit
If I (as the sole director) knew the bill was due, did I pay an illegal dividend on the 1st Jan?
- What about if I didn't know? (eg if the usual amount for the direct debit was £100 but it had spiked for one month)
Would £400 of the dividend retrospectively become £400 of directors loan (through end of year accounting)?
Assuming MyCo had balanced everything by year end, does it matter? if not, what if the numbers were a lot bigger i.e. over 10k?
thanks
MyCo has £1100 of distributable profits
on 1st Jan I pay a £1000 dividend
on 2nd Jan MyCo pays a £500 bill via a direct debit
If I (as the sole director) knew the bill was due, did I pay an illegal dividend on the 1st Jan?
- What about if I didn't know? (eg if the usual amount for the direct debit was £100 but it had spiked for one month)
Would £400 of the dividend retrospectively become £400 of directors loan (through end of year accounting)?
Assuming MyCo had balanced everything by year end, does it matter? if not, what if the numbers were a lot bigger i.e. over 10k?
thanks
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