How many time a year do you draw dividends?

[watford]

How many time a year do you draw dividends?

Hi I am new here . As I understand there is no offical guide on how many times you can declare a dividend , normally if you are declaring a monthly divdend you would be advised to vary the amount being i.e £1000 in June and 900 in July ,Normally there is a threshold ceiling to dividend tax I think it's over £43,000 then you pay divdend tax at a higher and of course you have to sign the board meeting minutes in which you sign and send to your accountant when you delclare a divdend.

[opc]

I take dividends as often as and of a magnitude that the company can afford but generally monthly simply because I don't trust myself not to take it quarterly and spend it in 6 weeks.

[AZZIK]

Would it not look dodgy in the eyes of HRMC?

I've never taken divs more than 2-3 times a year as I was under this impression.

No.

So then why ask?

[PhilAtBFCA]

Dividend Frequency

normally if you are declaring a monthly divdend you would be advised to vary the amount being i.e £1000 in June and 900 in July .

Hi Watford,

Yes I see where you are comming from, but I think you are missing the point.

It is not the fact the you are taking regular dividends. the question is - Are those dividends linked to your profit. If the profit fluctuates - does the dividend too ?

To put it another way -

How does taking £1000 in one month and taking £900 in another defend any position with HMRC when in the first month your profit was £2000 and the second £3000 , for instance.

Dividends come from retained profits in the business.

Hope thats helps

Phil