Company tax change and calculation of dividends

[liley]

Thank you everybody for advice

[DaveB]

You can prepare one voucher and pay the dividend in as many instalments as you want. E.g. you can declare a dividend of 10,000 and leave it in the company account, and withdraw it in instalments of 2,000 each. All that matters is that the company has the money, and that you have a voucher to cover at least the total withdrawn.

But can you do this when the company doesnt actually have the full amountnin it's possesion?

Assuming nothing changes drastically I can confidently predict my profits for the next 12 months and declare a divi based on that, but I wont actually have any money to pay it at the time it is written.

[liley]

Thank you everyone for advice

[Davros]

But can you do this when the company doesnt actually have the full amountnin it's possesion? Assuming nothing changes drastically I can confidently predict my profits for the next 12 months and declare a divi based on that, but I wont actually have any money to pay it at the time it is written.

DaveB, you are correct. Dividends should not be paid out of anticipated future profits.