Max Dividend and bank transfer

[ASB]

According to this guide it is the Declared date for Final and Paid date for Interim dividends:



I assume if no dividends were declared as part of the annual accounts, they will all be "Interim" and therefore it is the Paid date that counts.

Yes, but transfer to Directors Loan Account = absolute right to the funds = constructive payment. Thus the cash doesn't actually have to end in the shareholders current account. However it has been the subject of some discussion: e.g.

interim dividends

[d000hg]

Question is why would you want to withdraw it after April?

Is it because you do not have the funds are are waiting to be paid again and in that case you could argue you do not have the profits in the last year to pay it so you are withdrawing it from profits in the next year.

If the money is there why bugger about and just withdraw it now?

Well you might we waiting for payment of an invoice at the start of the month and be worried you could miss by 1 day due to payments taking time to go through in many cases. You might even have a cheque to deposit or something.

[VectraMan]

Well you might we waiting for payment of an invoice at the start of the month and be worried you could miss by 1 day due to payments taking time to go through in many cases. You might even have a cheque to deposit or something.

Bump.

I'm in this position now. I was expecting a payment yesterday (31st March), but I've had to chase and now it's Friday 1st and BACS takes 3 working days so having the cash before 5th April will be a close run thing even if paid today.

I could legitimately declare a dividend based on the amount that's invoiced before 5th April, but if I don't transfer the cash until 7th April, which year will it count as? What if I write a cheque on the 4th April, post it to myself, then take a couple of days before I can get to the bank, then pay it in knowing it'll take 3 days to clear...

The alternative is to raid the tax money to pay the dividend, and if things do go wrong and the payment never arrives I can always call that a loan and tear up the dividend declaration and no-one will ever know. But I'd rather not resort to that sort of skullduggery.

Suggestions? Better to declare the dividend in advance and wait to pay, but not if it's going to come back and bite me.

[ittony]

I'm in this position now. I was expecting a payment yesterday (31st March), but I've had to chase and now it's Friday 1st and BACS takes 3 working days so having the cash before 5th April will be a close run thing even if paid today.

I could legitimately declare a dividend based on the amount that's invoiced before 5th April, but if I don't transfer the cash until 7th April, which year will it count as? What if I write a cheque on the 4th April, post it to myself, then take a couple of days before I can get to the bank, then pay it in knowing it'll take 3 days to clear...

The alternative is to raid the tax money to pay the dividend, and if things do go wrong and the payment never arrives I can always call that a loan and tear up the dividend declaration and no-one will ever know. But I'd rather not resort to that sort of skullduggery.

Suggestions? Better to declare the dividend in advance and wait to pay, but not if it's going to come back and bite me.

I'm in a similar position on this thread: http://forums.contractoruk.com/accou...ut-profit.html, and from what I found here: https://www.pcg.org.uk/cms/index.php...rticle&id=7605 it seems there's no problem "raiding the tax money" as long as you're sure you'll be getting those invoices paid. If despite your reasonable expectations they weren't paid, presumably you could loan the money to your company to pay the tax with. That's my reading of it anyway. Interested to know if anyone thinks otherwise, because that's exactly what I'm about to do.