personal tax return - dividend

[Clare@InTouch]

Thanks for the advice.
So as long as the work has been done, time sheets submitted and invoiced, I can declare the dividend?

If work has been invoiced by your company then the value will be part of your turnover as at invoice date, so a dividend would be possible then (assuming your company has the profit).

[Danielsjdaccountancy]

If work has been invoiced by your company then the value will be part of your turnover as at invoice date, so a dividend would be possible then (assuming your company has the profit).

Agree with Claire here.

Dividends are taxed at the point they are paid by the company, not when they are received by the individual.
If you’re straddling a tax year, date the cheque the year you want it to be applicable to and then bank it when you’re ready. You must however ensure you have the reserves available when you declare the dividend.
This is where a good software package or spreadsheet can be helpful so you can judge what reserves you have left after corporation tax.

[7of9]

thank you all

Thank you very much for the replies! I had a meeting with my accountant who is a charted accountant.

He has confirmed that the profit is calculated on an accruals basis therefore the payment date or the invoice dates are not important. As long as all invoices are then paid the profits are not reduced.

So in my case, I can declare max dividends in advance because the company knows the approximate profit at that point.