how often should you pay dividends?

[Old Greg]

Which is my point - provided you state in the company minute book that a distribution of £26,000 will be made on 31st March 2007, the taxman will probably be happy with that as opposed to looking at the company bank statements to see a weekly withdrawal of £500.

But that sounds like you're falsifying company documentation to avoid a tax investigation. It may well avoid the investigation but if you then get investigated for other reasons, they'll see your weekly £500ish payment and a false single dividend declaration at the beginning / end of year, and you may find yourself in difficulties.

[Gonzo]

But that sounds like you're falsifying company documentation to avoid a tax investigation. It may well avoid the investigation but if you then get investigated for other reasons, they'll see your weekly £500ish payment and a false single dividend declaration at the beginning / end of year, and you may find yourself in difficulties.

Dividends do not have to be paid at the same time as they are declared.

There must be sufficient profit in the company when the dividend is declared, but it can be drawn down in stages if required. Large companies declare their dividends well in advance of when they get paid out.