Dividends or PAYE

[ASB]

My understanding is that it would most likely be treated as a loan, so possible further complications depending on the amount.

That said, if you can't be arsed to take the time to get it right (it's not rocket science), then more fool you.

CTM20095 - ACT: General: Notes on company law aspects of dividends

whilst it may be treated as a loan the actuality is that it was held on trust by the recipient. Certainly a mess.

an issue is that a number of offences under the companies act may have een commited. Though quite who would have the right to complain and sanction for that is beyond me.

[DirtyDog]

Does anybody know where this idea that you shouldn't take monthly dividends came from? It's quite odd. As ASB says, as long as their is sufficient retained profit and the correct paperwork is drawn up, a dividend is a dividend.

There's a post on AccountingWeb where an accountant was just putting dividend payments as a non-tax item on monthly payslips with no paperwork, which is obviously problematic - linky.

So, if some accountants are getting this so fundamentally wrong, you can see how it might lead to the perception that "monthly dividends are a bad thing".

[Jessica@WhiteFieldTax]

There's a post on AccountingWeb where an accountant was just putting dividend payments as a non-tax item on monthly payslips with no paperwork, which is obviously problematic - linky.

Things like that make we wince. Like when agencies / clients pay limited companies using the payroll, PAYE style payslips and a NT taxcode - seems to me to set the wrong tone. Very hard to talk your way out of disguised employment....