Handling Dividends

[FiveTimes]

1. I take dividends about quarterly although I do adjust the dates if, for example, there is something big that I want to pay for. Dividends can be declared at any time with any frequency, providing there is profit in the company. In practice how confident can you be of the amount of profit in the company on a monthly basis if you are contracting.

Surely it fairly easy to predict profit for the company (well in my case it is).

My invoices are paid every week, then I just deduct 20% for corp tax and move that into a reserve account. There are a couple of other outgoings accountants fees, phone, broadband, but the rest is just pure profit isn't it ??

I try to take about 50% out every 4/5 weeks and leave the rest for bench times.

[JKnz]

Surely it fairly easy to predict profit for the company (well in my case it is).

My invoices are paid every week, then I just deduct 20% for corp tax and move that into a reserve account. There are a couple of other outgoings accountants fees, phone, broadband, but the rest is just pure profit isn't it ??

I try to take about 50% out every 4/5 weeks and leave the rest for bench times.

Sounds about the same as what I am doing then. Only week I dont receive a payment is if I dont work. In which case there are those 'bench times' funds.


Think I will just continue to do monthly dividends and make sure I have the paperwork in place to support them

[max]

Put the money in high interest account.

There are plenty of business reserve accounts that pay high interest.

So no need to lose the interest!

Check abbey/hsbc, even carter allen

I currently get 5%+ at abbey.

[2uk]

There are plenty of business reserve accounts that pay high interest.

So no need to lose the interest!

Check abbey/hsbc, even carter allen

I currently get 5%+ at abbey.

I will .

My biz account with HSBC pays really low , if something at all.

[FiveTimes]

There are plenty of business reserve accounts that pay high interest.

So no need to lose the interest!

Check abbey/hsbc, even carter allen

I currently get 5%+ at abbey.

Just a quick question regarding reserve accounts.... I use it for putting my VAT/Corp etc in it and earn a little bit of interest.
It also help to keep this money seperate, however the current account that I use to keep my bench fund in doesn't attract that much interest. Would I be better shifting all funds into the reserve account ?

[TheFaQQer]

Just a quick question regarding reserve accounts.... I use it for putting my VAT/Corp etc in it and earn a little bit of interest.
It also help to keep this money seperate, however the current account that I use to keep my bench fund in doesn't attract that much interest. Would I be better shifting all funds into the reserve account ?

Yes.

[max]

I will .

My biz account with HSBC pays really low , if something at all.

Have you considered changing banks? No need to stay with HSBC!

You're throwing money away!

[max]

Just a quick question regarding reserve accounts.... I use it for putting my VAT/Corp etc in it and earn a little bit of interest.
It also help to keep this money seperate, however the current account that I use to keep my bench fund in doesn't attract that much interest. Would I be better shifting all funds into the reserve account ?

Yes... I normally keep a float of around 1k in the current account. Rest in the reserve.

With abbey, the online move money between accounts facility is instant, so I can top up current account when needed, for say VAT payments.

[TheFaQQer]

Yes... I normally keep a float of around 1k in the current account. Rest in the reserve.

With abbey, the online move money between accounts facility is instant, so I can top up current account when needed, for say VAT payments.

There's a limit on how many monthly transfers out of the reserve account though.

[max]

There's a limit on how many monthly transfers out of the reserve account though.

What limit?