Reducing Payment on account for large dividend

[pr1]

There is a big difference between the way big companies and small tax dodging contractors work.

but legally they're all limited companies and under the same rules?

[northernladuk]

but legally they're all limited companies and under the same rules?

But they can still be completely different animals. Large companies can not shoehorn divis through at the last minute like we can. They have to hold AGM and vote on the divis and so on. Something you (and most contractors) probably don't appreciate when ticking your boxes. It's us bending the rules and taking them down to the wire where many other larger companies simply cannot.

[TheFaQQer]

But they can still be completely different animals. Large companies can not shoehorn divis through at the last minute like we can. They have to hold AGM and vote on the divis and so on. Something you (and most contractors) probably don't appreciate when ticking your boxes. It's us bending the rules and taking them down to the wire where many other larger companies simply cannot.

No they don't - they have to hold a board meeting, not an AGM.

Which they could do at any time. It's unlikely that they would declare a dividend that late in the tax year, but they could.

Even so, it is the responsibility of the tax payer to ensure that they have all the paperwork for the tax year correct when they file their return. It would be very silly to do that on April 8th, when it's unlikely that you will have the paperwork - but if you did, then you would be liable for the error.

[pr1]

But they can still be completely different animals. Large companies can not shoehorn divis through at the last minute like we can. They have to hold AGM and vote on the divis and so on. Something you (and most contractors) probably don't appreciate when ticking your boxes. It's us bending the rules and taking them down to the wire where many other larger companies simply cannot.

I also hold board meetings and vote on dividends - I've got the paperwork to prove it!

[northernladuk]

I also hold board meetings and vote on dividends - I've got the paperwork to prove it!

Thanks to this thread you might have an idea why and how it works as well. Double bonus.

[lecyclist]

In that case, the pension approach JB mentioned isn't in the picture.

Has your corporation tax from your last completed tax year been paid, and if not, how much was it? If you don't retain enough to cover tax liabilities already incurred (CT for your prior year plus CT for the current year to date, plus any VAT due on revenue to date), you've paid an illegal dividend.

It may appear illegal also. However, if the dividend payment was made according to future revenue expectations, that never materialise, the requirement will be for the shareholder to repay the shortfall.