Dividends - after year

[Sockpuppet]

Am I right in thinking that as last year I made e.g £4000 profit after tax and only took £3k as dividends I can take out the other £1k now?

As its technically shareholders funds I can't see a problem with this. Just got the a loan request from a sibling who has the financial management sense of a walnut.

Half tempted to not pay, see her get her house reposed, win it at auction as a BTL and rent it back to her. *evil laugh*


But yes, I assume this is possible.

Sockpuppet in "i don't need no stinking accountant" mode

[Sockpuppet]

Ok, in the wrong forum. Should be in accounting. Doh.

[TheFaQQer]

Sounds right to me, SP.

[phayes]

is it not just retained profit, you should have already paid tax on it, its yours to take when you want.

[TheFaQQer]

is it not just retained profit, you should have already paid tax on it, its yours to take when you want.

As long as you declare it as a dividend, yes.

[VectraMan]

Some would say you should only take dividends based on last year's profits.

[TheFaQQer]

Some would say you should only take dividends based on last year's profits.

He's already declared it as a profit - there's nothing wrong with taking it out of retained profits that I can think of. Microsoft did it recently, IIRC.

[Sockpuppet]

Tax was paid on it (grrr). Dividend declared. Sweet.

[NotAllThere]

Half tempted to not pay, see her get her house reposed, win it at auction as a BTL and rent it back to her. *evil laugh*

What's evil about that? She's clearly not capable of taking on the responsiblity of a mortgage. You'd be doing here a favour.

[VectraMan]

What's evil about that? She's clearly not capable of taking on the responsiblity of a mortgage. You'd be doing here a favour.

The evil thing would be to lend her the money even though you know she can't pay. Ordinary people can't be expected to take responsibility, therefore it's always the lender that's to blame.