Originally posted by trigger
You do not need to pay yourself any wages at any point unless you are a worker. If you are a director without a service contract you are not a worker.
Dividends are paid by any company out of profits, be these current year or retained from previous years. So provided you have not paid it all out you are fine.
e.g. t/over to April 2008 52,000, salary 1,000, other expenses 1,000, gross profit 50,000. CT 10,000 net profit 40,000. Dividends paid 25,000. Retained funds 15,000. You still have 15k of dirtibutable reserves in the following tax year [to which current year profits can be added or current year losses taken off].
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