Dividend types

[Hicks]

Good afternoon

I am coming up to the end of my first year of contracting and, so far, have not drawn a dividend from my Limited company.

As such, I am keen to draw one in the next week.

I was under the impression that there was only one type of dividend but after reading an article on the QDos website, there appear to be two types: Interim & Final.

To ensure I draw a dividend correctly as detailed in the above article, would the dividend I propose to draw be a Final dividend?

[Hex]

As it indicates in the article you linked to, a Final Dividend is paid after your company accounts for a given year have been drawn up and show you have made a profit. You can then declare a Final Dividend for that company year. Anything you pay before the Final Dividend is an Interim dividend. You can have multiple of these.

[Little'Old Me]

Don't forget to minute your dividend!

If you declare a interim dividend the "board meeting" date on the minutes must be during the year, which also issues the dividend during the trading year.

The minutes can be signed anytime afterwards. This just confirms the minutes are correct once they have been produced.

[Hicks]

Thank you for the advice.

To confirm, there is no additional process in terms of actually paying the dividend I need to be aware of.

i.e is it OK to transfer the funds electronically from my business account to my personal current account?

[Gonzo]

Thank you for the advice.

To confirm, there is no additional process in terms of actually paying the dividend I need to be aware of.

i.e is it OK to transfer the funds electronically from my business account to my personal current account?

No additional process.

Just ensure that you have minuted it as a dividend, then transfer the money. That's all I ever did.

[Hicks]

No additional process.

Just ensure that you have minuted it as a dividend, then transfer the money. That's all I ever did.

Many thanks.

After reading the article on the QDos website I wanted to make sure everything was done correctly.