Dividend frequency

[Clippy]

Just wanted to get an idea of how often the congregation declare dividends.

For me was going to do this quarterly but am now thinking of maybe doing it twice yearly instead.

[Gonzo]

Quarterly for me.

There is an urban myth that HMRC will claim monthly dividends are salary and tax and NI should be paid on them accordingly. But there is no evidence that this is true.

So long as there is profit in the company, then AFAIU they can be declared as often as you like.

I could switch to annually, but that is a long time to make your money last.

[malvolio]

Quarterly for me.

There is an urban myth that HMRC will claim monthly dividends are salary and tax and NI should be paid on them accordingly. But there is no evidence that this is true.

So long as there is profit in the company, then AFAIU they can be declared as often as you like.

I could switch to annually, but that is a long time to make your money last.

Not really an urban myth, there is an underlying logic. If you always pay a fixed dividend every other month regardless of income, or indulge in any other routine payment habit, then just perhaps Hector has a point.

As with all things, the application of a bit of intelligence usually works wonders...

[THEPUMA]

Not really an urban myth, there is an underlying logic. If you always pay a fixed dividend every other month regardless of income, or indulge in any other routine payment habit, then just perhaps Hector has a point.

As with all things, the application of a bit of intelligence usually works wonders...

It is an urban myth. HMRC wouldn't even know how frequently you were paying dividends until they had already opened an enquiry.

There is no evidence and no case law that I have come across that HMRC have ever successfully argued this.

I would have no qualms whatsoever advising my clients that they can draw dividends hourly if they wanted to.

[malvolio]

Quite right, of course. I ws thinking of a couple of cases where the divi was re-classified as income by Hector, but both were in the course of a wider investigation. As you say, Hector only normally sees an annual statement

[THEPUMA]

Quite right, of course. I ws thinking of a couple of cases where the divi was re-classified as income by Hector, but both were in the course of a wider investigation. As you say, Hector only normally sees an annual statement

I'm unaware of those cases. Do you have a link or can you remember where you read about them?

[VectraMan]

As and when I feel like it. Last year I went without for 4 months, then paid a large dividend on April 6th.

[malvolio]

I'm unaware of those cases. Do you have a link or can you remember where you read about them?

Long time ago - 7/8 years perhaps? I'll have a hunt through my archive this evening.

[THEPUMA]

Thanks

[gadgetman]

I don't think there was any mention of a 'fixed' dividend.

Personally I pay a monthly dividend based on what is left after my outgoings for the month plus all of my tax liabilities.

Not really an urban myth, there is an underlying logic. If you always pay a fixed dividend every other month regardless of income, or indulge in any other routine payment habit, then just perhaps Hector has a point.

As with all things, the application of a bit of intelligence usually works wonders...