Paying out Div`s- Timings

[contractor55]

I have 4x shareholders. I`m happy to pay out 2x of the shareholders per quarter but the other two I want to pay out per month- Can I do this ?

[JamJarST]

I have 4x shareholders. I`m happy to pay out 2x of the shareholders per quarter but the other two I want to pay out per month- Can I do this ?

No I don't think you can, dividends are declared for all shareholders of the same type of share and split according to the ratio of shareholding.

[Craig@Clarity]

Unless the shares are of different class then it's possible.

[contractor55]

all 4 x shareholders hold the same type , just different %

[contractor55]

If I have to declare the DIV`s at the same time, can I withhold the actual payments of two of them until each 1/4. From a HMRC point of view, I would like to keep two DIV`s at per 1/4 so it does not look like a wage as per many suggestions. However I presume since I declare them per month HRMC will view it as per month though I delay payment or is it on payment date

[THEPUMA]

If you have sufficient profits and everything is amicable, you could declare all dividends quarterly in advance then pay some out monthly and some quarterly.

PUMA

[JamJarST]

all 4 x shareholders hold the same type , just different %

So in answer to your original question, no you cannot pay ot 2 of the shareholders monthly and 2 of them quarterly. What is the problem with paying them monthly? Can you not pay a bit extra monthly until all 4 can afford quarterly?

As an aside, why do you have 4 shareholders?

[THEPUMA]

If I have to declare the DIV`s at the same time, can I withhold the actual payments of two of them until each 1/4. From a HMRC point of view, I would like to keep two DIV`s at per 1/4 so it does not look like a wage as per many suggestions. However I presume since I declare them per month HRMC will view it as per month though I delay payment or is it on payment date

You are worrying about nothing. If the paperwork is done correctly, HMRC cannot simply recategorise a dividend as a wage.

PUMA

[SueEllen]

If I have to declare the DIV`s at the same time, can I withhold the actual payments of two of them until each 1/4. From a HMRC point of view, I would like to keep two DIV`s at per 1/4 so it does not look like a wage as per many suggestions. However I presume since I declare them per month HRMC will view it as per month though I delay payment or is it on payment date

It doesn't make any difference as it goes on the dividend vouchers.

And there is no rule about how often you can declare dividends.

[northernladuk]

Why do you have 4 shareholders? Are you sure it all looks above board should you be investigated or have you just dished them out ot your family to keep your tax liabilities to a minimum?