Declaring Dividend

[Wanderer]

1) Is it ok to use such resolutions to declare dividends 4 0r 5 times during the year?
2) Whether the Dividends declared using written resolutions are considered final dividends or interim dividends?
3) What about the wording of following resolution? Am I missing something?

To answer your questions:

1) If you are the company director then you can declare as many dividends as you see fit. Some people invoice weekly and declare their dividends weekly too. There's nothing wrong with that so long as you complete the correct paperwork, you need meeting minutes and dividend vouchers.

2) Just state in the meeting minutes that they are "interim dividends"

3) I think the form of words you are using is fairly reasonable. There are lots of other templates for board meetings to declare dividends out there that you can compare with. I think you will also need a dividend voucher with the amount of tax credit shown on it. This calculation is a bit goofy so ask your accountant about it.

If you are uncomfortable with your current accountant then find a new one from the list of recommendations. There are also accountants who advertise or post helpful information on this forum you could check out.

Certainly, your accountant should help you setup a book keeping system whereby you can calculate the state of your company balance sheet on a daily basis and see how much is reserved for Corp Tax, VAT etc and how much is available to distribute as dividends. If you don't then you run the risk of taking dividends ultra vires, ie beyond what your company can pay and causing headaches.

[crimson]

To answer your questions:

1) If you are the company director then you can declare as many dividends as you see fit. Some people invoice weekly and declare their dividends weekly too. There's nothing wrong with that so long as you complete the correct paperwork, you need meeting minutes and dividend vouchers.

2) Just state in the meeting minutes that they are "interim dividends"

3) I think the form of words you are using is fairly reasonable. There are lots of other templates for board meetings to declare dividends out there that you can compare with. I think you will also need a dividend voucher with the amount of tax credit shown on it. This calculation is a bit goofy so ask your accountant about it.

If you are uncomfortable with your current accountant then find a new one from the list of recommendations. There are also accountants who advertise or post helpful information on this forum you could check out.

Certainly, your accountant should help you setup a book keeping system whereby you can calculate the state of your company balance sheet on a daily basis and see how much is reserved for Corp Tax, VAT etc and how much is available to distribute as dividends. If you don't then you run the risk of taking dividends ultra vires, ie beyond what your company can pay and causing headaches.

Thank you very much for your detailed advise. I appreciate it.