• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Weekly Dividend

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #11
    Originally posted by Sausage Surprise View Post
    You might to check if funeral expenses are tax deductible
    Would like to see him sign his year end accounts off if he has claimed it lol.......
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #12
      Originally posted by Sausage Surprise View Post
      You might to check if funeral expenses are tax deductible
      Oops that was meant to be tide lol
      In Scooter we trust

      Comment


        #13
        Thanks for you replies everyone they have been as ever, very informative
        In Scooter we trust

        Comment


          #14
          Originally posted by The Spartan View Post
          Oops that was meant to be tide lol
          I thought it might be
          Blood in your poo

          Comment


            #15
            Originally posted by The Spartan View Post
            Hi everyone

            I've done a search and haven't found much regarding this topic:

            The best way to time your dividend payments | Reading Accountants | Caprica Online Accountants



            I spoke to a friend earlier who is contracting via a LTD company and he mentioned he pays his dividend weekly. I was a bit horrified by this as I've not heard of this being done before but he said his accountant told him there was no problem with it.

            Do any of you pay your dividends weekly? What are the pros and cons of doing so? and before someone lays into me I have only worked via umbrella companies as I have to working in Switzerland
            There's nothing in UK statute that says divies must only be taken at specific periods ie weekly, fortnightly, monthly quarterly etc.
            I couldn't give two fornicators! Yes, really!

            Comment


              #16
              Originally posted by BolshieBastard View Post
              There's nothing in UK statute that says divies must only be taken at specific periods ie weekly, fortnightly, monthly quarterly etc.
              You are indeed correct good sir which is why I posed the question out of sheer interest and curiosity
              In Scooter we trust

              Comment


                #17
                Originally posted by The Spartan View Post
                You are indeed correct good sir which is why I posed the question out of sheer interest and curiosity
                It was one of the first thing my accountant said to me when I started my first company, LOL!
                I couldn't give two fornicators! Yes, really!

                Comment


                  #18
                  Originally posted by BolshieBastard View Post
                  It was one of the first thing my accountant said to me when I started my first company, LOL!
                  hahahaha I've not got to that stage yet, but now I know ready for when I do incorporate a company
                  In Scooter we trust

                  Comment


                    #19
                    Up to now (coming towards the end of my first 6 month stint) I have taken regular dividends when the money hits my account (as I'm on weekly self-billing) but that was with the aim of getting my warchest built up and earning as much interest as possible given the poor rates.

                    Now I have my warchest, I am cutting down the number of dividends and will move onto a monthly then quarterly cycle as I "need" the money much less than when I first started (with little/no personal funds if this didn't work out).

                    My accountant will then roll up my dividend payments at year and and will feed them into my self assessment accordingly.

                    Comment


                      #20
                      Originally posted by The Spartan View Post
                      Do any of you pay your dividends weekly? What are the pros and cons of doing so?
                      You can take a dividend whenever the company has distributable profits. Distributable profits could arise because your company raises an invoice. If you invoice weekly then you can declare a dividend weekly too.

                      Note that even if an invoice hasn't been paid, the director can still declare a dividend provided the company has sufficient cash in the bank to pay the dividend and they have no reason to believe the invoice won't be paid. (That's probably pushing it but it's perfectly legal from what I have read).

                      When you raise a dividend you need to have a board meeting and produce meeting minutes and a dividend voucher for the shareholder(s). If you are running a close company (as you will be) then the actual "board meeting" is a formality but the meeting minutes and dividend vouchers are essential otherwise the dividend could be challenged.

                      Your accountant will supply you with a template for the minutes and voucher, they are pretty simple but watch out for the gross vs net dividend because the calculation is a bit goofy. The net dividend is the amount you get paid, the gross dividend includes this nominal "tax credit".

                      You should also consider taking a salary up to the tax free limit of £7,488 (£624/month) because reduces your corporation tax and is more efficient than taking a dividend. This does depend on how much income you have earned in the UK this financial year though so get your accountant to review your tax affairs in detail and advise on this.

                      When choosing an accountant, I strongly suggest that you get one with some sort of system that allows you to see the exact state of your business at any time - especially if you are considering taking dividends quite frequently. This could be by using a proprietary online portal system, off the shelf system like FreeAgent or Xero or perhaps a spreadsheet that you update on your PC.

                      Some people retain a lot of money in their company to avoid higher rate tax and pay out dividends from their retained funds quite infrequently, others like to run it close to the wire and take frequent dividends to pay down their flexible or offset mortgage.

                      I would advise that you take the £7488 salary and dividends when the invoices are paid until you get to the higher rate tax limit and then retain funds in your company as a war chest.
                      Free advice and opinions - refunds are available if you are not 100% satisfied.

                      Comment

                      Working...
                      X