Withdrawing dividend before invoice paid?

[Jessica@WhiteFieldTax]

You can declare a dividend before that in theory. The company year end and CT calculations include money that you're owed, but should also include the value of work you've done but not invoiced for. So the calculation for shareholders funds would include profits you haven't invoiced for yet. I'm not suggesting that's a good way to operate ;-).

Yes, totally correct, as sales includes work done but not billed, as well as billed and unpaid, you can use that value against divided.

I would agree, its not the best way to operate though.

[rm55]

So this isn't directly the question OP asked but....unless my figures are totally busted, even a 30% interest rate on £5k would be only about £28 a week. Assuming that your debt is less than £5k and the interest rate is in the 10-20% area, is it worth the agro for the sake of a week or so?

I'd just declare a dividend once the invoice was paid and then clear the card balance.

Yeah, the interest rate goes to 1.313% a month but I've always planned on paying it off, worst case with my savings but hopefully at least in part with money form my company.

Thanks to everyone for the replies, I just wanted to check as wasn't going to accidentally do anything illegal!