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Weekly Dividend

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    Weekly Dividend

    Hi everyone

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

    http://www.capricaonline.co.uk/guide...dend-payments/

    Frequency of dividend payments (dispelling a myth)

    I have heard it said that HMRC take a dim view of you regularly paying yourself in dividends. They probably do but there is absolutely nothing wrong it. You can pay yourself a weekly or daily dividend if you want and it is perfectly legal and fine. As long as you follow the guidelines to avoid an illegal dividend (ie profits + voucher + board minutes) there is nothing HMRC can do about it. (Practical considerations mean once a month is probably going to be much more sensible!)
    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
    Last edited by The Spartan; 30 January 2013, 08:58. Reason: more info
    In Scooter we trust

    #2
    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
    Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.

    I have been payed weekly in the past put I always try and minimise the number of times a year that I take money out.

    Comment


      #3
      Originally posted by bobspud View Post
      Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.
      ^-- This is what I do. It goes as a director's loan until it's time to declare it.
      And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

      Comment


        #4
        Originally posted by bobspud View Post
        I always try and minimise the number of times a year that I take money out.
        This is what all the contractors I know do at present which is why I was surprised when he turned around and said I do it weekly, granted it is his first gig but it just didn't seem right when he mentioned it
        In Scooter we trust

        Comment


          #5
          Originally posted by bobspud View Post
          Generally I knew a guy that just took money out the company as he wanted it and then the accountant delivered the dividend statement at the end of the year that reflected what he had taken.

          I have been payed weekly in the past put I always try and minimise the number of times a year that I take money out.
          I've always just paid the dividend as and when I wanted to. It's not exactly difficult to fill out the paperwork each time.

          If you need a dividend payment each week, then you're clearly living very hand to mouth, and that can't be good.
          Will work inside IR35. Or for food.

          Comment


            #6
            I a trying to move to a quarterly dividend from an as and when needed
            Originally posted by Stevie Wonder Boy
            I can't see any way to do it can you please advise?

            I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

            Comment


              #7
              I tend to keep it quarterly or longer.

              Depends when I need it.

              Whopper in April usually goes relatively quickly as the wife has a shopping list all ready to go.

              Currently new boundary wall, paving and garden re-design.
              Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

              Comment


                #8
                Originally posted by VectraMan View Post
                I've always just paid the dividend as and when I wanted to. It's not exactly difficult to fill out the paperwork each time.

                If you need a dividend payment each week, then you're clearly living very hand to mouth, and that can't be good.
                I said to him is there any need to have it weekly as I know he'll p*ss it all away buying gadgets, he jumped from being a permie so I doubt he had any capital behind him. But I have tried to stress that no gig lasts forever and he will need money to die him over in between contracts.
                In Scooter we trust

                Comment


                  #9
                  Originally posted by The Spartan View Post
                  I said to him is there any need to have it weekly as I know he'll p*ss it all away buying gadgets, he jumped from being a permie so I doubt he had any capital behind him. But I have tried to stress that no gig lasts forever and he will need money to die him over in between contracts.
                  You might to check if funeral expenses are tax deductible
                  Blood in your poo

                  Comment


                    #10
                    I dividend to myself once a year for the full amount and then stick it somewhere where it is earning something and draw down on that as I need it. No point leaving it in the business earning squat just because you want a regular income IMO.

                    You are correct in stating you can take a dividend anytime. Just because you take one monthly does not indicate you are a permie. Being paid monthly and declaring a dividend are completely different beasts. The only common factor is the monthly cycle. If you are assuming doing something monthly makes you an IR35 target I need to tell the missus to get some insurance out quick!!!
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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