Erm - can you give your dividends back please...

**XLMonkey** · 31 August 2006, 18:38

Yet another broadside in Malvolio's campaign against non-ltd contracting....

Malvolio, you are on commission from Companies House and I claim my fiver.

**malvolio** · 31 August 2006, 21:45

Oh do pay attention. I've nothing against umbrellas and have often said that for some people and/or some circumstances they are the way to work. However, umbrellas pay you via PAYE, which is one reason they put you ouside IR35 - if you are an employee, it doesn't apply and you're already paying the tax so who cares.

But that also means they do NOT PAY DIVIDENDS... composites pay dividends and composites are not an easy way to run a company, they are a plain and simple avoidance mechanism on one side and a money-maker on the other (sadly, not for the contractor).

**ASB** · 1 September 2006, 12:25

I think this might be a little bit of sabre rattling on behalf of the liquidators. The affected have two lines of defence:-

1) I am not convinced there is an absolute requirement under the companies act for the dividend to actually be minuted and put to resolution. [It is certainly good practice to do so]. There is, of course, an absolute requirement for it to be paid out of profits.

2) For the claim to succeed it will need to be shown (recent case) that the shareholders knew or ought to have known that the payment was illegal.

Liquidators threaten and demand all sorts of things. Often without the backing of legal force. A lot of people will captiulate.

**Mailman** · 3 September 2006, 12:32

Someone remind me why so called "businessmen" arent actually running a real business?

Some of you contractors make me laff

Mailman

Erm - can you give your dividends back please...